Vivre Real Estate February 10, 2023
Buying a Home
As top San Francisco real estate buyer agent specialists for over 20 years, we understand that buying a home here is a high-stakes, competitive and complicated process. Homebuyers are always looking for ways to make their offer stand out to sellers. While offering the highest price is certainly important, it's not the only factor that determines whether or not your offer will be accepted.
Below, we'll dive into the topic of offer price, concessions and contingencies, and why waiving contingencies to be the winning offer may or may not be the right course of action for your home purchase. Keep in mind that even in a slower market, buyers will still have to navigate the complexities of making a competitive offer. The good news: we're here to help from start to finish! Let’s get into it.
Making an offer that appeals to a seller involves more than just offering the highest price. While price is the major factor, there are several other ways a homebuyer can make their offer stand out. Here are some of the most common.
Offering a higher price than the asking price, or a higher offer in counter-offers than your original bid, can be an effective way to make your offer more attractive, especially in our competitive market. However, it's important to consider whether the home is worth the price you're offering, and whether the increased price will affect your ability to afford the home. If you are financing your home purchase with a loan, your lender may not be on-board if the offer price exceeds their opinion of the property’s value.
For any buyer, it is critical that you hire an experienced San Francisco buyer agent who is knowledgeable in current, local market conditions, so you have the info you need to decide whether or not to offer more.
Contingencies are provisions included in a real estate contract that give the buyer an “out” if certain conditions are not met. By waiving some of these contingencies, you can make your offer more appealing to sellers. For example, waiving the financing contingency means that you are committed to buying the home regardless of whether you are able to secure financing or not. With fewer contingencies, your offer is more likely to lead to a smooth escrow and an efficient closing, which is a big deal for most sellers. No one wants their deal to fall apart after all the time, effort and emotion invested.
Closing escrow faster can be another big advantage to sellers, who want to sell their home quickly and move on to their next destination and adventure. Like you, most sellers are busy with life, moving—you name it. Plus, a faster escrow means less time for something negative to happen in the transaction. If you are willing and able to close escrow more quickly than other buyers, your offer will be more appealing to sellers.
There are other concessions that a buyer can make to make their offer more appealing to sellers. For example, offering to pay closing costs, home repairs, or even taking care of a portion of the property taxes can make your offer more attractive. This often involves more cost out of the buyer’s pocket, so it’s not too dissimilar from offering a higher purchase price in the first place. Before making any concessions, it's essential to weigh the risks and benefits and make an informed decision that aligns with your goals as a buyer.
Making an offer on a home involves more than just offering the highest price. By understanding the role of contingencies and the different ways to make your offer stand out, you can increase your chances of having your offer accepted. While making concessions such as waiving contingencies, closing escrow faster, or offering to pay closing costs can make your offer more attractive, it's essential to weigh the risks and benefits and make an informed decision that aligns with your personal homebuying needs and goals.
If you're in the market to buy a home in the San Francisco Bay Area, or if you have any questions about the homebuying process, please don't hesitate to reach out. Our team of expert advisors is here to help and guide you through every step of the way. Click here to contact us.
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