5 Strategies to Secure Your Ideal Home in a Seller's Market

By John Lyons

John Lyons, a distinguished broker associate at Baird & Warner, has carved a niche in the Chicago real estate market with his comprehensive, client-first approach. With over $130 million in career sales, Lyons has a proven track record in assisting a diverse range of clients, including luxury home buyers, first-time buyers, sellers looking to move up, and investors.

In today’s challenging real estate market, with increasing interest rates and a shortage of available homes, buyers often find themselves competing for properties. Sellers have the upper hand, making it crucial for buyers to stand out with their offers. Here are five effective strategies to increase your chances of getting your offer accepted:

1. Offer above asking price. To succeed in a multiple-offer situation, consider offering more than the asking price. Even a modest increase, such as an extra $2,000, can capture the seller’s attention. While going above the asking price is necessary in competitive markets, it doesn’t necessarily translate to significantly higher monthly payments.

2. Use an escalation addendum. Employ an escalation addendum, a supplementary document attached to your offer. This document states your willingness to outbid the next offer by a specified amount, up to your maximum or ceiling price. This approach ensures you secure the property without overpaying and leaving money on the table.

3. Limit your inspection. Sellers often fear deals falling apart due to issues discovered during the inspection period. While waiving the inspection entirely can be risky, you can limit your exposure by shortening the inspection period or focusing only on major safety repairs. This demonstrates your commitment while protecting you from unforeseen expenses.

4. Cover the appraisal gap. With home prices rising rapidly, many houses aren’t appraising for their final sales price. Rather than negotiating responsibility for the difference, make your offer more attractive by agreeing to cover the potential appraisal gap. This can make your offer stand out to sellers and streamline the closing process.

5. Be flexible. Sellers often have unique preferences regarding the timing of their sale. Work closely with the listing agent to understand the seller’s needs, whether it’s a quick close or an extended period. Offering flexibility in the closing timeline or providing options like a leaseback or post-occupancy period of up to 60 days can make your offer more appealing.

By implementing these five strategies, you can increase the likelihood of having your offer accepted. Call or send us an email if you need assistance or have questions – we’re here to help you secure your dream home in this challenging market.