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As a buyer in DC, Maryland and Virginia, where the market has now shifted toward a seller-controlled environment, you are facing sellers with more leverage because of the declining inventory.
And as would happen typically in a market where there are fewer properties and more buyers, we often end up with multiple buyers vying for the same property.
How do we handle that?
This is where we step in and institute some key techniques and methods that will put your offer on top. Imagine, a seller that has sat and watched the past five years go by with little to no control over their home selling situation. Now, they list their home and suddenly they are receiving not one, not two but several offers (if not more). Traditionally, you’d expect them to go for the one offer that is the highest price. But there are additional factors that could impact their decision.
How Badly Do You Want the Property?
A very important question that we ask our clients when dealing with a competitive situation, is just how badly do they want the property? Are they so in love with it that they are willing to obtain it at all reasonable costs? Is timing a factor? Is this purchase simply a passing-by interest that may or may not be essential for their happiness? Their answer will point to how we would approach the situation.
What Are the Internal and External Situations?
Once you have determined how important this property is to you – we move on to evaluating the environment. From an external perspective, we look at the overall marketplace and how it's been performing. We also gauge what a reasonable price to pay for the property while also considering the maximum amount you're willing to pay if competing.
From an internal point of view, we try to gauge the seller’s position and determine their motivation in selling their property. Are they looking to relocate and are on a time constraint? Are they selling for financial reasons? Through our conversations with the listing agent, we develop a strong rapport with them and begin to understand the areas where we may have more leverage.
Finally, we also look at the internal situation of the buyer. If there are factors that make this a key purchase to pursue, such as wanting to lock in a specific interest rate, a family situation or financial motivation, we approach it more aggressively.
How Can We Stand Out in a Crowd?
Once we have evaluated everything, we then work on accomplishing those goals. There are many ways to stand out in a crowd, particularly when it’s a matter of several buyers competing for one property. Some of the things we can do to present a more attractive offer to the sellers include eliminating contingencies in the offer, offering a larger down payment and catering to the seller’s needs.
Contingencies are set up to protect both the buyer and seller but in Maryland, Virginia and DC, the buyer has a very powerful right to walk away at any point after a home inspection is done. A way to get around this, thereby creating less hassle for the seller without sacrificing the peace of mind that you as a homebuyer desire, is to have a pre-offer home inspection conducted.
Larger down payments make for more secure mortgage processing and therefore a smoother process overall. Not only does this demonstrate to the seller that you are very serious about purchasing their home but it also sets you apart from other offers where there may be lengthy procedures before the closing.
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There are numerous things that we can do to work with your situation and we devise a strategy with each unique case. Contact us today to find out how we can assist in your real estate endeavors! We can be reached by telephone at 202-290-1313 or via email at info@enggarcia.com.
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