Houlihan Lawrence broker offers guidance for buyers and sellers navigating the competitive market
In today’s market of very limited inventory, we are seeing almost every home that hits the market in Greenwich — that is priced appropriately — go into a multiple-offer situation. What does this mean for a seller? Sellers can get top dollar, and they can typically get a contract quickly on their home, with no contingencies. Buyers are often willing to drop contingencies when they know they are up against competition.
Oftentimes, the occupancy date is more important to the seller more than the price or contingencies on the contract. We are seeing more and more contracts being craftier, where the buyer will close in 30 to 45 days to lock-in an interest rate (before they go), and they are allowing the seller time to stay in the house for a few months while they look for appropriate housing.
I recently did a closing where the buyer allowed the seller to stay in the house after a cash close for nine months, rent free. You can have a baby in that time period!
What does this all mean for a buyer? If you are up against several other buyers, make sure that you have a well-crafted offer. Find out what is going to be important to the seller, and most importantly, have your agent find out when the seller would like to move. If you can reduce the stress for the seller, your offer becomes more attractive. Additionally, make sure that your offer is presented in the best light. I recently had a multiple-bid situation for one of my listings. The offer packages varied greatly. Make sure that your agent not only presents the offer, but proof of funds, your preapproval letter (if you are financing), as well as signed disclosures. The more that you can show that you are ready to go, the better you look in the eyes of the seller.