How to get your offer accepted in a sellers’ market

 It's September 2021, and we are in a seller's market in every part of Los Angeles. Unfortunately, many homebuyers do not get their offer accepted and become frustrated and feel defeated after submitting so many offers. This article will go over what offers are being accepted today and the strategies and tools used today to get offers accepted.Let's first start with the biggest myth I constantly hear about buying a home. One of the most common myths out there is that I need all-cash, or at least 20% of the purchase price, to get my offer accepted, and 3%-5% down is not good enough to get an offer accepted today. Yes, it is indeed easier to get an offer accepted when you have more money to prove you can afford the purchase, but it is also true that sellers are taking deals with less money for other reasons. Let's first go over why sellers decide to go with someone who has less money than what you can do to stand out. So let's get to it!Sellers don't care as much about what you put down, but if you can afford it.When a seller looks at the buyers' offers with their real estate agent, they look for the buyer who can perform the transaction. The seller's agent looks at the buyer's file and can see how the lender qualified the buyer - were they pre-qualified, pre-approved, or upfront underwriting. The listing agent can look at your proof of funds and see how much you have leftover after your down payment for the property. They can research you, the lender, and your agent. The listing agent is looking for a file of a well-qualified buyer, a lender who can perform, and an agent who is easy to deal with. As a buyer, make sure you have upfront underwriting, a skilled agent, and a lender working for you to get your offer accepted.What challenges does the seller have during and after the sale?These are great opportunities that many buyers and agents do not investigate. Some sellers need time to look for their next property, have a specific date they need to close by for tax purposes, or maybe some other term that is not listed. Have your agent talk to the listing agent and determine what challenges the seller may have.Make the best offer you can, and do not trust the list price because it is not the market price.When you see a house on the market that price seems "too good to be true" or lower than the competition, it most likely is, and here is the reason why. The listing agents intentionally set a competitive price to get as many buyers as possible to be interested in the property. The theory is that the more buyers look at a home in a short period, the more buyers compete. The price that the seller accepts is the market price. As a buyer, you need to seek the market price and talk to your agent about techniques to make sure you get a competitive price.Buyers, here is what you can do to make your offer stand out.Get a reputable active lender who has you pre-approved(at minimum) or can get your file upfront underwritten.While going to a home showing, be on your best behavior: most homes have cameras.Have an active agent that will run a comparative market analysis, talk to the listing agent, come up with a plan before writing the offer.Have the lender and agent continually followup keep you postedFor the agents out there, here are some tips.Add a summary of the offer page, find the listing agent's favorite way to communicate, and courteous and professional.If your buyer wants the home and is willing to accept it AS-IS, let the sellers' agent know.When sending your offer, CC your lender and have them introduce themselves and be open to cross-qualify.Remove contingencies when possible.Set a realistic home appraisal value and let the seller know in the contract what your buyer will be okay with under their offer price.Check with the lender on what time frames are possible and reduce the contingency times and close of escrow time with your buyer and lender's approval. Also, check if that is what the seller is looking for.If your offer is denied, follow up with the seller and ask why and if you can be a backup offer.