If You Pay the Seller’s Closing Costs, is Your Offer for on a Costa Mesa Home More Likely to be Accepted ?
Despite the fact that there has been a large decline in the median value of real estate, multiple offers have become common on many of the homes in Costa Mesa and throughout Orange County are because there is not a lot of inventory in a lot of areas, especially in the lower price ranges.
Added to the low inventory is the fact that many investors offering are cash on lower priced properties, and many sellers prefer the certatinty of cash to the uncertainty of a buyer obtaining a loan.
Many non-cash buyers want to know what they can do to get an offer in this competitive market. If your offers have been rejected or you’re concerned that you cannot compete with cash buyers, consider being creative. Price is not always the final decision maker for a seller. As mentioned above, a lower cash offer might be chosen because of the lack of a loan contingency.
Making an offer more competive
- Consider offering a larger earnest money deposit.
- Offer a shorter escrow (if possible – allowing for a quicker close).
- Don’t ask for termite repairs (just the inspection).
- Don’t ask for a home warranty.
- Offer to remove contingencies in just a few days; you could offer to complete all inspections in 5 days instead of the typical 17.
Any or all of these might make your offer more attractive to the seller when buying a Costa Mesa home. Carefully consider the pros and cons of making these offers. They may create slightly more risk than a more “typical” offer; however, they may also mean an acceptance rather than a rejection.
Basically, making the offer as simple and beneficial to the seller as possible, makes it more likely that your offer will be accepted.
Would offering to pay seller costs make your offer more attactive? It could, especially if a seller has very little equity in the home. But, relatively speaking the costs of escrow and title are fairly small, and you might find more creative ideas make you even more competitive.
What if the Costa Mesa home is a short sale?
In additon to the above:
- Offer to put the money in escrow immediately
- Agree that the escrow may not be cancelled for a specific period of time (like 60 days), after which it can be cancelled and the deposit returned to the buyer if the bank hasn’t agreed to the short sale.
The seller might choose this offer over others as it shows that the buyer is serious and committed to wait for the bank to make a decision.
It is important to understand, as well as possible, the seller’s motivations in selling the home when making an offer that is most likely to be accepted on a Costa Mesa home.
Things to consider:
Is it a short sale? Are they moving out of state, etc. The more you and your agent know, the better you will be able to tailor your offer to the needs of the seller.
Will paying the costs make your offer more likely to be accepted? Maybe, but there are other factors to be considered and other ways to make your offer more attractive.
If you would like to buy a Costa Mesa home and want to make certain that you are making the best offers possible, please contact me at 714.319.9751.
Wondering what homes are for sale in Costa Mesa? Call 714.319.9751 for the most recent list of homes.