Recently we listed a home for sale in Duck. In just four days we ended up with eleven offers. Just one of them was for the asking price. The rest were higher. During the time we were receiving offers about half the agents told me that their clients had made offers on two, three or four other houses and had not been able to be the accepted offeror.
This certainly is an usual market. It’s unknown how long this will last but if you are serious about purchasing an Outer Banks property now then it’s important to understand what you can do to increase your chances of having your offer accepted. What things are sellers and listing agents most concerned about? Besides price, both sellers and listing agents want to accept an offer that has very limited ways for a buyer to get out of the transaction and to close at a time that is most beneficial to the seller. Here’s a quick summation of ways to address those concerns.
When someone has to get financing to purchase a property then there’s a chance that they won’t get that financing. To combat a seller worrying about that, submit a pre-approval letter with your offer from a local lender. That will give the seller and listing agent a higher level of comfort that the transaction will go through. Sometimes out-of-town lenders don’t understand the nuances of Outer Banks real estate. Just about every veteran OBX real estate agent has a story of how an out-of-town lender messed up a transaction. A large down payment also gives the seller comfort. That’s because a buyer can still buy the house and take care of repair issues if they have more cash than necessary to purchase the house.
Due Diligence Period
Paragraph 4 of the current NC Standard Offer to Purchase gives the buyer a period of time to void the contract for any reason or no reason. Of course, that paragraph makes sellers and listing agents nervous. How do you overcome that? The shorter the time period the better. Also, if you need a significant amount of time and you are competing with other offerors then consider offering some non-refundable due diligence money. That money is paid to the seller once you have a contract and then goes towards your closing costs. The more due diligence money the more secure the seller will feel about your offer. WRAL in Raleigh had a report recently that some North Carolina buyers were offering tens of thousands of dollars in due diligence money. Fortunately, the market on the Outer Banks typically does not see that much.
Most sellers want to close quick. On the other hand, a seller who is selling in the spring may want some of the summer income or want to use it one last time. Prior to making an offer have your agent ask the listing agent when the preferred closing time would be for the seller.
Not everyone can offer the best of each one of these offer features. Also, it’s not often in multiple offer situations when one offer has the best all of these features. What offer you make for one house may not be what you’d do for another house. Sometimes it takes a few tries to find the right house at the right terms and conditions. Your Scott Team Realty agent has the patience and expertise to help you in this unusual market.