USE AN ESCALATION CLAUSE Use this strategy to beat other offers by X amount. An escalation clause is language written into a purchase offer that automatically increases your purchase price by a certain amount above competing offers, until the offer reaches the maximum price you are willing to pay for the home. An escalation clause only goes into effect when there are competing offers.
SHORTEN, MINIMIZE OR ELIMINATE CONTINGENCIES & DUE DILIGENCE PERIOD Loan, Financing, Appraisal, Inspection, Sale / Lease of Property, Contingency periods. According to the National Association of REALTORS ®, the home offer with the fewest contingencies is often the most attractive.
THE APPRAISAL Consider being willing to waive the appraisal contingency if the lender allows you to waive the appraisal requirement. You could also add a special stipulation to absorb a portion or the entire difference if the home appraises for less than the purchase price.
BE FLEXIBLE ON THE CLOSING DATE Typically, a shorter closing date is strongest but sometimes it comes down to being flexible based on the seller’ s needs and timing for their move.
OFFER TEMPORARY OCCUPANCY AFTER CLOSING In most cases it’ s appealing to the seller, consider offering them the right to occupy the property after closing for an agreed upon period. They might need to wait on their next home to be ready or for their kids to finish the school year, for example. The maximum time allowed is 60 days.
OFFER TO PURCHASE THE PROPERTY“ AS IS” Making an as-is offer is essentially your promise that you won ' t ask the seller to do any repairs. You could opt to have a short due diligence period and still have an inspection, but you are stating that no repairs will be requested.
OTHER TERMS PREFERRED BY SELLER Consider agreeing to terms the seller suggests such as using their preferred Closing Attorney, a closing date that works for them, etc.