Are you ready to begin your search for a new home in the Norwalk, CT area? With low inventory and high demand, the Norwalk, CT real estate market is currently in favor of sellers. Though this may make it a bit more difficult to find and make a successful offer on your dream home, it certainly doesn’t mean it’s impossible. One of the realities of a seller’s market is that many homes will get multiple offers. In some situations, this will turn into a bidding war where interested buyers continue to increase their offer amount in an attempt to win the home. Want to increase your chances of winning home with multiple interested buyers? Here are some tips.

Work with an experienced Norwalk, CT real estate agent

Though working with an experienced real estate agent is important regardless of the market, it’s especially crucial when buying in a competitive market. Your Norwalk, CT real estate agent can help connect you with homes that have just been listed, will be listed in the near future, or won’t be listed at all in a pocket listing situation. They can also help you write an initial offer that will attract the attention of the seller and represent you should a bidding war develop. A good agent can connect you with other professionals you’ll need to work with once your offer is accepted.

Submit more earnest money

Earnest money is a deposit on a home. If your offer is accepted, it will go toward your down payment. If your offer is not accepted, you will get the money back. Putting down earnest money shows sellers that you are a good-faith buyer. The typical amount of earnest money offered on Norwalk CT homes for sale is between 1-5%. To make your offer stand out from the crowd, consider increasing this amount. Not sure how much you should offer? Talk with your agent about what it might take to ensure you make an impression.

Make a cash offer

Those with Norwalk CT homes for sale know that financing can fall through. It can also take a while to get through all the red tape involved in mortgages. That’s why those who make cash offers often win the bid for a new home even if other areas of their offer aren’t as strong as their competitors’. Of course, most buyers don’t have enough cash in the bank to buy a home outright. After all, the median price of a Norwalk home is $488,000. If you want to make an offer in cash and don’t have it on hand, you can consider a private lending source, or you can sell assets such as land, classic cars, or stocks and bonds to come up with the money. No matter how you choose to do it, make sure you have the money in your bank account before you make the offer.

Get pre-approved for a loan

The next best thing to making a cash offer is having a letter of pre-approval in hand when you make an offer on a home. Getting pre-approved for a mortgage shows the seller you are serious about buying the home and gives assurance that you’ll be able to get the money you need should your offer be accepted. To get pre-approved to buy Norwalk, CT homes for sale, visit the lender of your choice and be prepared to show them proof of employment, salary, and assets. The lender will also check your credit history and score as well as your debt-to-income ratio and make copies of your driver’s license and take down your social security number.

Leave out contingencies

In a less competitive market, it’s common for buyers to include contingencies in their offer. These are meant to protect buyers and give them an out should certain requirements not be met. Common contingencies include those based on the results of inspections and appraisals, on obtaining financing, and on selling a home before moving forward with buying the new one. If you want to strengthen your offer, consider leaving out these contingencies. You may also want to include an appraisal gap guarantee. This states that you agree to pay — up to a certain amount — any gap that occurs when the appraisal price comes in lower than your offer price. While all of these strategies put you somewhat at risk, it’s often worth it for buyers who fall in love with a home that has gotten multiple offers.

Include an escalation clause

You can put your offer for a new home that has more than one interested buyer on autopilot by writing in an escalation clause. This states that a buyer will increase his or her offer over competing offers up to a certain amount. This can facilitate the process and ensure you don’t get left out should a bidding war occur. It can also help you stick to your budget as your offer will automatically drop out of the running once offers hit a certain amount. 

Be flexible

Depending on their selling goals, some sellers may be most interested in getting top dollar for their home while others would rather leave some money on the table to get out of their house quickly. To strengthen your position, have your agent tell the seller that you’re willing to be flexible on things like move-in/move-out date, leaseback agreements and other issues that could make the seller’s life easier.

Ready to search for your dream home in this competitive real estate market? Reach out to one of the trusted Norwalk, CT real estate agents at The Local Realtors for expert guidance. They’re sure to increase your chances of winning the bid.