How to Beat Other Offers in Northern Virginia’s Competitive Housing Market

Purchasing a home in Northern Virginia’s competitive market can seem intimidating, but with the right Realtor you can get the keys to your new home! Our team has much experience helping clients craft the best offers and buy in Northern Virginia’s hectic market. Check out the following tips for winning on your dream home!

Waive Contingencies

There are a variety of contingencies one can waive in order to give sellers peace of mind that your offer will go to closing.  Waiving home inspection means you won’t be doing a home inspection at all, and therefore, will not be asking for any repairs from the seller and can’t void the contract based on the results of the home inspection.  If you write it in the contract, you can still do a home inspection for informational purposes but you still can’t void based on the results if you waive this contingency. 

Another contingency you can waive is the appraisal.  Basically, this means that regardless of what the appraisal comes out to, you are committing to paying the difference in cash between the appraised price and contract/offer price (since your lender will only let you borrow up to the appraised price). 

Finally, you can waive the finance contingency.  This means that if the lender ultimately finds out that they can’t approve your loan, you can’t void the contract and will move forward OR you will forfeit your earnest money deposit.  Waiving any of the above contingencies requires understanding what you are willing to do and requires some thought.  However, in this competitive market, it is very common to waive one, several, or all contingencies. 

Give Sellers What They Want (Other than Just the Price)

Many times, sellers might just want the highest price offered.  However, other times, sellers might want other items in the offer that make your offer more attractive to them.  Sellers might have an idea of when they would like to close, so being flexible in this area can strengthen your offer immensely!

This can include giving them a rent back should the sellers need more time in the home as they prepare for a move or another purchase.  Your Realtor can find out what might appeal to the seller by talking with their agent.  Not asking the seller to pay for anything such as the pest inspection or home warranty, and forgoing seller credits will also strengthen an offer.  In addition, offering ample earnest money to show how serious you are will also make your offer more appealing.

Escalate

In competitive markets like Northern Virginia, adding an escalation addendum can be a proactive approach to beating out other offers. In short, this tells the seller that if another offer is above your original offer, you’re willing to add more money to your offer to secure the home, all without going over a max ceiling that you set for yourself.  Don’t worry- if you win, the other agent will provide your Realtor with proof that the escalation was necessary to beat out the other offers!

Write a Letter

Sellers love to hear what you love about the home and what it would mean to you to be able to take care of it as they have done!  They also like to hear about who you are and it doesn’t hurt to point out some similarities between you all if you’ve noticed something during the showing (i.e. maybe you are both Nationals fans).  It can also reinforce that you are seriously ready to move forward and secure your dream home. Don’t underestimate the power of the pen!

Don’t miss out – contact me at 703-298-3051 or kathy.kchao@pearsonsmithrealty.com or get more information on our team at www.communitygroupsells.com!

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