It can be tough out there for buyers in NYC’s current super competitive market. Low inventory and high demand mean plenty of sales are going into multiple bid situations, causing a lot of would-be buyers to feel a little hopeless. Don’t worry. There IS a way. And, contrary to popular belief, it’s not always the highest bid that wins the deal. Follow these simple steps to put you on the high road to snagging your perfect home, highest bid or not.
Include a personal letter to the seller.
Sellers are people too, and they like to feel good about who’s buying their space. What’s more, if you’re buying in a co-op, they’ll want to feel assured you’re a good candidate for passing the board. Include a letter to the seller with your offer explaining who you are, what you do, and why you love their property. It can go a long way.
Make a cash offer, if possible.
Sellers love cash offers. A cash deal can close quickly (banks can take 45 days or more to approve a mortgage) and the seller doesn’t have to concern herself with the possibility the buyer won’t be able to obtain a loan. Cash is a sure thing.
Consider waiving your financing contingency.
Based on your financial situation, your attorney may or may not advise waiving the financing contingency as a viable option for you. But if you can’t or don’t want to offer all cash, waiving your financing contingency is the next best thing. Basically, you’re waiving your right to recoup your 10% deposit if, for any reason, you are not able to obtain financing for the purchase. (Usually, the idea is that you would pay cash, if necessary, rather than lose your deposit.) This gives the seller an extra feeling of protection.
Don’t ask for concessions.
You want the deal to be as clean and easy as possible. Asking the seller to pay fees on your behalf, do extra renovations, etc., is not going to work in a multiple bid situation.
Be realistic with your number.
You may not need to be the highest offer to win, but you do need to be in the ballpark. Do your research and ensure that you’re offering at least current market value for the property. If you’re comfortable going a little above market, of course that helps.
Let the seller know you’re ready to move quickly and you’re flexible.
Most sellers want to close “ASAP,” and they don’t want to wait around for a signed contract, so it’s a good idea to include your attorney info in the offer and let the seller know that, upon acceptance, you’re willing to have contracts signed within a week (make sure your attorney can get their due diligence done quickly) and to close as soon as possible. Since sellers often have to plan their own moves, wait for tenants to vacate, etc., it’s also nice to let them know you’re willing to work around their schedule.