As of right now, we have just 1.5 months of inventory in our Oklahoma City metro market, which is incredibly low. If no new homes came onto the market, it would take just a month and a half to sell off all homes across all price points. Since six months of inventory is considered a balanced market, we’re in a very strong seller’s market.
This means many properties are fetching multiple offers and prices are being pushed upward. If you’re a buyer, there are two keys to remember to compete in a multiple-offer situation.
1. Speed. Submit your offer as quickly as possible—I recommend doing it the very same day the home goes on the market. We always advise sellers that their first offer is usually their best, so the quicker you turn your offer in, the better your chance of having it accepted.
2. Strength. When it comes to strength, there are four areas to focus on:
- Price: The higher the price, the more likely the seller will pick your offer.
- Closing costs: Are you paying your own or asking the seller to pay some of them? With so much pressure on pricing, there’s a higher likelihood that some appraisals will come in low. If you’re asking the seller to pay some closing costs in this situation, your offer becomes less attractive.
- Earnest money: Purchase contracts in Oklahoma are very favorable in terms of buyer protection, meaning you can put down more earnest money and still be protected. It won’t cost you any more to show the buyer you’re serious.
- Flexibility: If you use a good agent, they’ll chat with the listing agent to find out if there’s anything your party can do to tailor the contract to the seller’s needs.
Bonus tip: Cover appraisal shortgages. When prices are being pushed upward, sellers can get concerned that their home’s appraisal will come in low in a financed deal. If you want to make your offer more attractive, offer to cover appraisal shortages up to a certain amount. For example, if a house is agreed to be sold for $300,000 but only appraises for $290,000, the buyer can typically back out of the deal unless the seller agrees to drop the price to the appraised amount. If you really want to win the home, though, you can tell the seller that you’ll cover any appraisal difference as long as it doesn’t exceed $10,000.
As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’d love to help.