Eagle Idaho is a desireable, upscale community nestled along the base of the Boise
foothills. Eagle offers high-end, quality-crafted homes, fine dining, boutique shopping
and a friendly community. The Boise river meanders through Eagle and you'll often
find folks walking the greenbelt or enjoying a peaceful picnic along the banks.
Eagle offers convenient access to the entire Treasure Valley and provides direct
routes to northern ski areas, foothills hiking, river rafting and other fun Idaho
outdoor activities. If you prefer newer construction homes in an upscale market
then Eagle is the place for you. Pictured above is Rembrandt’s Coffee House in Eagle’s
quaint downtown area.
North Boise is one of the most sought after communities in the Boise area. Affectionately
referred to as The North End, here you will find classic architecture and character
in the turn of the century and early 1900's era homes. Many homes in The North End
have been fully restored to their original condition with a complementary touch
of modern conveniences. If you enjoy tree-lined streets, patio-dining at corner
restaurants and quiet and peaceful neighborhoods then be certain to see a few Boise
homes in this area during your visit. Pictured above is Boise’s historic Harrison
Boulevard which runs from Boise’s thriving downtown through the heart of The North
End.
June 28, 2021
Anyone who is paying the slightest attention to our current real estate market knows that it is hot, hot, hot, and it shows no sign of letting up anytime soon. With the national exposure Boise and the surrounding area is getting, plus the high demand for housing and low inventory, we are experiencing record appreciation, up to 3-4% month over month! And a lot of Buyers are paying cash, with offers well over the asking price. However, if you are looking to buy and you need to finance your purchase, do not despair! You can compete and even beat cash offers or multiple offers if you enlist the services of a savvy and experienced real estate agent.
Here are several strategies you can employ to win against cash offers or multiple offers:
DO YOUR HOMEWORK. Make sure you are pre-approved and not just pre-qualified. There is a big difference between the two. Pre-qualification letters are virtually meaningless, as any knowledgeable Seller knows. To be pre-approved, you need to provide your lender with all required documentation including among other things employment verification, financial records, asset statements, and liabilities. Do this prior to beginning your house hunt. A pre-approval letter strengthens your offer and gives your Sellers the confidence of knowing you are financially able to close the transaction.
OFFER OVER ASKING PRICE. Sellers are usually most interested in the highest priced offer and for good reason. They simply want to get the most return for their significant investment. In today’s market, Buyers need to work with their Agents to determine if an over-asking offer price is necessary, and if so, how much over asking. Sometimes, this means that Buyer should look at homes in the lower range of the Buyer’s targeted price range. That way, Buyers can increase their offer price without risking not qualifying for the loan amount or not having sufficient funds to obtain a conforming loan (FYI…the conforming loan limit this year in our area is $548, 250). If you are unsure how much over asking to offer, consider adding an escalation clause that will pay X dollars over any other offer up to X dollar amount. Your Agent will have escalation contract language to include in your offer if you decide to use this approach.
CONSIDER A LARGER-THAN-NORMAL EARNEST MONEY DEPOSIT. This approach provides additional assurance to the Seller that you are confident you can close the deal. You may even offer a non-refundable deposit either upon acceptance of your offer or after inspection. Consult with your Agent to see what may be needed to entice the Seller into accepting your offer.
TAILOR YOUR OFFER TO THE SELLER’S WISHES. Do not assume the Seller desires a quick close. Some will and you need to be ready to close within 3 weeks if you want to compete against cash Buyers. However, some Sellers may require a longer-than-normal close, so you will need to be flexible. Often, Sellers want a delayed possession of several days or a rent back option. If you accommodate them and even offer to allow the Seller to remain in the home at no charge during the rent back period, your offer make jump to the front of the line if there are multiple offers. Make sure your Agent has a conversation with the Listing Agent to determine what works best for the Seller.
MAKE YOUR OFFER AS CLEAN AS POSSIBLE. Do not ask for personal property or make your offer contingent on the sale of another property. The latter may be difficult due to timing but consider asking for a rent back at your current property to allow you time to secure another home. If you must include this contingency, make sure as many of the contingencies on your current property are resolved before making an offer on another property.
USE A LOCAL LENDER. Listing Agents may advise their Sellers to give preference to offers that use a local lender instead of a national lender. Agents have a comfort level with local lenders that typically does not exist with out-of-state lenders. You have probably heard stories of missed deadlines and deals going south because the lender did not perform.
REMOVE INSPECTIONS AND APPRAISAL CONTINGENCIES. Be careful when using this strategy as it involves a certain amount of risk. The age of the property, its condition, the complexity of the listing (private wells, septic systems, acreage, etc.), the uniqueness of the property all play into the risk equation. Your Agent will be able to guide you through the process to determine if you should employ this strategy. Sometimes the Seller will have completed a pre-inspection, so you will be able to review the report prior to making an offer. If a pre-inspection report is not available, you can include language in your offer stating you will conduct a home inspection, but you do not intend to ask for repairs. Removing the appraisal contingency altogether allows you to compete on an equal footing with cash offer. If you are putting down a significant amount of money, you may be able to remove the appraisal with little risk to you. However, sometimes you may want to cap the amount you are willing to pay at closing between the appraisal price and offer price.
Offer over asking price and include an escalation clause or be willing to bid higher (choose lower in your price range)
OFFER ADDITIONAL INCENTIVES. You may decide to pay the closing costs which are typically shared between the Buyer and Seller. Other creative incentives you may have heard about locally include offering season tickets to Bronco games (Go Blue), paying the Selling Brokerage commission, offering to paying the Seller’s moving costs, and one extreme example from another state involved the Buyer paying for the Seller’s next home!
Using a combination of the above-listed strategies will help your offer stand out and even beat cash or multiple offers received by a Seller. Be careful to assess the level of risk you are willing to take and structure your offer accordingly. Remember, while offer price is important, other terms and conditions may be equally as important. Use clear and concise language in your offer that protects you while still appealing to the Seller’s wishes. You can WIN and get the home you desire!
Kelly McCune
208-914-5724
kmccune@atova.com
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