Q. My Husband and I Are Starting Our House-hunting Journey. There Are So Many Other Buyers – What Do We Do to Stand Out From the Crowd?
Many people think that the highest bid always gets the house, but it’s not always true. Yes, price is one of the biggest factors in negotiations, but financing and due diligence are right up there too.
For financing, cash is always king. Your cash offer can be more attractive than a higher bid that is contingent on financing. Because ultimately, the financing might fall through – cash never will.
Then there’s due diligence. Due diligence is the amount of time buyers say they need to make sure all their questions about a property are answered. We’ve seen lengthy due diligence times when buyers want to see if their kids like the property, if their dog likes the property, if the feng shui is correct, if the neighborhood is noisy on summer weekends, you name it.
What due diligence comes down to is having the greatest degree of confidence that the closing will happen with the agreed-upon terms. If you, as a buyer, can shorten the negotiated due diligence period, your offer can stand out from a higher one where the due diligence period is longer and has a lot of stipulations.
Lastly, flexibility can beat out a higher offer. We’re seeing lower offers accepted when the buyer allows the seller 3-6 months to find their new home and move out.
Bottom line? The easier you make it for a seller, the greater chance your offer has of being accepted, even if it’s not necessarily the highest.
