Husky Homes Blog

The greater Madison area housing market remains competitive, with well-priced homes often receiving multiple offers. If you’re looking to buy, it’s crucial to craft a strong offer that stands out. Here are key strategies that we are seeing buyers leverage to increase their chances of success in a competing offer scenario:

1.     Get Pre-Approved, Not Just Pre-Qualified
This is the bare minimum; a pre-approval letter from a reputable and local lender shows sellers you are financially serious and ready to close. Even better – we work with many local lenders who can provide a fully underwritten preapproval letter, often allowing you to waive the financing contingency to differentiate your offer even more and compete with cash purchasers.

2.     Act Quickly and Decisively
Touring homes as soon as they hit the market and being prepared to submit an offer quickly can give you an edge. Sometimes it is as simple as being the first offer in which sets your offer apart. Many buyers are even writing sight-unseen offers to try to beat out the competition before the home ever hits the market. Either way, there is no time to waste for the right home – it is never guaranteed that a home listed as “Coming Soon” will still be on the market to go active or after a few days!

3.     Make a Strong, Competitive Offer
Work with your real estate agent to determine a competitive yet realistic price. In multiple-offer situations, consider an escalation clause to automatically increase your bid if necessary. This locks in an eBay style bidding scenario which ensures your offer is increased based on the terms of another offer.

4.     Minimize Contingencies
Sellers prefer offers with fewer potential roadblocks and risks. While inspections and financing are important, being flexible on contingencies can make your offer more attractive. If you have an option to exclude a contingency such as testing for radon or reviewing neighborhood covenants, sellers will always appreciate having less outs for the buyer in the offer to ensure a smooth transaction.

5.     Offer a Larger Earnest Money Deposit
A higher earnest money deposit signals commitment and seriousness to the seller. While 1% of the purchase price tends to be a typical earnest money deposit, buyers that consider 2% or more show the sellers how motivated they truly are to get locked in on this home.

6.     Be Flexible on Closing Dates
Aligning your closing timeline with the seller’s needs can be a simple yet effective way to strengthen your offer. Optionally offering the sellers a post-closing occupancy can also give the sellers peace of mind with the logistics of their move and not having to be rushed to get out of the home in a fast timeline.

7.     Consider an Appraisal or Inspection Gap Strategy
In a competitive market, offering to cover a potential appraisal gap or limiting repair requests can provide peace of mind to the seller. This lets the seller know you aren’t planning to nickel and dime them with any inspection findings, and that you assume the risk of repairs and bringing extra cash to cover any appraisal shortfall.

Navigating a hot market can be challenging, but with the right approach, you can improve your chances of securing your dream home. If you’re ready to start your home search, reach out to discuss the best strategies for your situation!