Interest in calling the Greater Palm Springs Area home remains at an all-time high thanks to the desert’s value, affordable lifestyle, proximity to other major SoCal destinations, and low population density. With the real estate market simmering as the summer months go on, traditionally a quieter time of the year, and a shortage of inventory, many homes for sale are running into a multiple offer situation. In this case, there are numerous interested parties who want to snap up that property, giving the seller a choice of offers to select. So what can you do to position your offer to be as enticing as possible? As this trend continues in the local market, we wanted to offer a few tips for homebuyers who are looking to make their move now.
First and foremost, speak with your trusted, local real estate professional. They are tapped into the industry and can help in many ways, including some of the suggestions we outline below. They may have a history with the listing agent who is representing the seller that can be leveraged in your favor. They will also have additional ideas and creative solutions of how to navigate your situation to make sure you put forth your best effort in securing your desert dream home.
Here are some suggestions for strategies that our agents have used to deliver successful results for their clients:
Getting pre-approved by a lender makes your offer on a home that much stronger. Having a pre-approval letter in hand, as opposed to a pre-qualifying letter, elevates your offer as it signals to the seller that you are already good for the funds and have the ability to close on the deal. This is a huge factor when the seller decides which offer to accept.
Be Flexible With the Move-Out Period
In light of everything happening in the world on top of the stresses of trying to simultaneously buy and sell multiple homes, being flexible with the seller about when you take full possession of the home can be huge. Even an extra 2-3 days of time can be the difference in making the moving out process smoother for them. If you are in a position to offer an extra couple of days occupancy without compensation, consider including that in your offer to show that you are not only serious about buying the home, but also considerate of the current owners and the impact moving, and juggling multiple transactions, can have on them. This relief of pressure, both emotionally and with the stress of moving, might help your offer stand out.
Come With Your Strongest Offer Up Front
In a housing market with tight inventory, chances are you are not the only party considering an offer on that home you absolutely have to have. To give yourself the best chance to come up with the winning bid, bring your strongest offer – within your budget – up front. Additionally, you should ask your agent to prepare a Comparative Market Analysis (CMA) on the home so you know its value in the current market. With this information in hand, you may be able to write an offer that’s over asking price but still within fair market value for the home. Chances are the other bids coming in will be at or just below asking price – as long as you don’t overcommit or overbid the home’s value, you can still get a good deal.
Consider Using a Price Escalation Addendum only with the guidance of a REALTOR®
An escalation addendum or clause is a contractual provision that allows a prospective buyer to say: “I will pay X price for your home, but if you receive another offer that’s higher than mine, I am willing to increase my offer to Y price.” In theory, an escalation clause is fairly simple. In practice, there are a lot of details that must be considered before using this approach so be sure to consult with your REALTOR® before employing this negotiation tool.
If you are looking for a home in the Greater Palm Springs Area, connect with your local Bennion Deville Homes REALTOR®. We look forward to unlocking possibilities for you.