Today, we are in a hot Seller’s market. Because of this, buyers are having a tough time getting the home they want. With limited inventory, new listings are a hot commodity that usually have multiple people interested in the property. So what do sellers look for in an offer and how do you beat out the competition?

First thing is to get daily updates of all the properties going on the market. This will be key so you don’t miss out on any properties and have enough time to view the property. Sometimes homes can get multiple offers in the first 3 days. (Usually homes will be available through the first weekend and they will review all offers on Monday or Tuesday following the weekend of showings. In order to give yourself the time to view the property and structure the offer it is essential to be updated daily on new listings that hit the market.

Next you want to research the subject property. If it is a property that is recently listed it is important to ask what kind of activity has the property gotten? Are there any offers? What kind of offers? When are they reviewing all offers? It is also essential to look at recent comparables to see if the price is justifiable or you will have to offer more than the starting/asking price. It is essential to have a professional realtor to guide you through this process. Sometimes the asking price is the starting price. Just because you submit an offer at full price does not mean you will get the property or even a counteroffer.

One common mistake that I have seen over and over again. During a multiple offer situation there have been so many instances where the buyer does not want to put their best foot forward and decide to offer less than their best price and try to get a deal. In a hot market like this, this is how you lose out on your top choices/options. Many people will not even get a counter so they don’t even get the opportunity to compete for the home. Sometimes sellers don’t even send out counter offers if they receive a great and satisfactory offer or to prevent wild emotions.

Finally how do you structure your offer? First, ask the seller if there is anything specific they are looking for? Sometimes they are looking for a longer closing date, a shorter closing date, shorter contingency periods, etc. Asking never hurts. Having a higher downpayment definitely is a factor but not the only factor. You can still compete with little down. Usually you will have to have a higher purchase price but if all the terms are what the Seller is looking for you can beat out other buyers who are putting 30% down.

Next put your best price. This is the single best advice. If you don’t get the property, you did your best and you will have no regrets. Many sellers will respect the fact that you put your best price and will sometimes eliminate the competition in full and accept the offer. That means no counteroffers and no more competition. Agents and sellers commonly want to avoid counteroffers because buyers let their emotions get the best of them and submit an offer out of their budget and regret the decision a little later, only to fall out of escrow.

Finally write a letter to the seller. Explain your situation and how their property is the perfect fit for you and your family. Make it personable and explain your home buying journey. This is your chance to lay it all out to the sellers and could give you that edge.