Sell your home in a seller’s market
“Right now, sellers are in the position where they can direct buyers to have as few contingencies as possible,” said Ms. Newquist-Nolan, the California broker. It’s a smart move, she said, because fewer contingencies means fewer opportunities when a deal may fail.
Take for example home inspections. From September 2020 to February 2021, 13.2% of Redfin’s winning bids had waived the inspection contingency, up from 7.3% a year ago, brokerage reports. (Such an eventuality would allow buyers to opt out of a deal if an inspection uncovers unexpected repair issues.) “Most buyers are forgoing home inspections right now in our area,” Ms. Wethman said. “Pre-tender inspections have become the norm.”
Most sellers are now prepared to allow buyers to hire a home inspector before bidding on a home. A pre-offer inspection that finds few issues could give the buyer the confidence to forgo an inspection contingency, which in turn could make the buyer’s offer a more attractive choice for the seller. .
Buyers are also finding ways to forgo the contingencies of home appraisal, in an effort to make their offer more attractive to a seller. (Valuation contingencies allow buyers to terminate a contract if a valuation is less than their bid price.)
“Some buyers who put in 20 percent agree to reduce their down payment to pay the difference if there is a valuation discrepancy,” Ms. Wethman said. For example, in a transaction where a buyer offers $ 300,000 for a house and has a 20% down payment, if the house is valued at $ 270,000, the buyer can reduce their down payment to 10% and use that 10% into cash. to fill the evaluation gap.
Compare apples to apples
The best approach sellers can take to evaluate deals, Lejeune said, is to compare them side by side.
His strategy: “I present the offers to my clients in an Excel spreadsheet which specifies the offer price, the loan amount, the type of loan, the contingencies and other important parameters,” he said. he declares. “It’s basically a memory aid for salespeople.”