Get the Home You Want Through a Backup Offer

Frustrated homebuyers in the Central Iowa market may be able to use the backup offer strategy to their advantage.

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A lot of Central Iowa homebuyers are frustrated right now. Certain segments of the market are on fire, and they aren’t able to get into homes fast enough. As a result, they feel they don’t have very many homes to choose from. There may still be hope if you use the backup offer strategy. In the past, once a home went under contract, there’s very little chance for a competing buyer to get their foot in the door. Once the seller had chosen another buyer’s offer, typically they made it to the closing table with no problems. However, in those super hot segments of the market, we are seeing a higher fallout rate. Why is that? First of all, many buyers feel like they need to make a quick decision in those market segments or they will lose the home. As a result, it’s very common for people to make offers on a home without fully vetting the property to make sure it’s the right home for them.

If the first deal falls apart, the seller has your offer to fall back on.

Secondly, multiple offer situations really drive up the price of a home. Buyers then have very high expectations of how that home will perform during the inspection. Buyers and sellers have a hard time agreeing what condition the property should be in, which has led to a number of deals falling apart after the home inspection. Having a backup offer in place puts pressure on that first offer. If for any reason that deal falls apart, the seller would much rather go to your offer than go through the hassle of putting the home on the market again. Plus, since you have a backup offer in place, the seller may be more willing to let the first deal fall apart. Not all agents can navigate the ins and outs of the backup offer, but we work hard at honing our skills in order to give our buyers the edge in this competitive market. If you have any questions about this strategy or anything else, just give us a call or send us an email. Remember, if we choose your question for one of our upcoming videos, you’ll get a free subscription to Better Homes and Gardens magazine. We look forward to hearing from you!

Get an Extra Chance to Win $2,500 Towards Your Next Iowa Home

The Iowa Finance Authority has a special sweepstakes right now offering $2,500 in cash or down payment assistance! We can help you get an extra chance to win. 

Want to sell your Central Iowa home? Get a free home value report

Want to buy a Central Iowa home? Search all the homes on the MLS

The Iowa Finance Authority is holding a great sweepstakes right now. You could win $2,500 in cash or in down payment assistance! The Iowa Finance Authority is a state-sponsored entity that promotes homeownership, which is so important to my team and I. The IFA also has a number of great programs available for down payment assistance and mortgages.

Write my name in as your Realtor to get an extra chance at that $2,500!

If you want two chances to win, simply write my name in as your Realtor. You can enter the contest HERE. Don’t wait too long—the contest only runs through the month of August! Whether you are buying a home for the first time or making a change, this is a great chance to win some money towards your dream home. If you have any questions, feel free to reach out to us. In the meantime, go ahead and enter. We hope that someone who knows our team wins this opportunity. Good luck!

How to Win the Home You Want in Central Iowa

So now that you’ve done the fun part-searched around for some homes, and found the one you want-what happens next? How do you make the offer so that you can successfully purchase this home?

"Don’t make it all about the money."

There are three important things to keep in mind:

1. You must act quickly. In today’s market, homes do not sit long when they’re priced well and in good condition. If you’ve identified the right home, make sure that you don’t overthink the process of submitting an offer for it, otherwise someone might swoop in and steal it from under your nose.
2. You must be reasonable. In the Des Moines metro area, most homes sell within 1% and 2% of the list price. Whether that’s above or below depends on the market area. It’s not a successful strategy, even when we’re trying to test the seller, to approach them with an offer that’s only 90% of the list value. All that will do is upset them and give off the impression that you’re not a serious buyer.
3. Don’t make it all about the money. Instead of getting caught up in the facts and figures, try utilizing some other terms that might make your offer more attractive to the seller. These terms can include having a flexible closing and possession date, what kind of personal property gets delegated, and having a shorter inspection period. There are many different ways we can mold the offer so that it isn’t exclusively focused on price. Remember - this property was likely the seller’s home. They might still have a great deal of emotional connection to it. When you share with them why you love it and why you could see your family living there, it appeals to their emotions. 

Now is not the time to be working with someone who is just a hobbyist. You need a negotiation expert. This distinction will make the difference between successfully getting the home you want or settling for your second or third option. 

As always, if you have any questions, please give us a call or send us an email. We would be happy to help you!

Taxes and Homeownership in Central Iowa

Selling your Central Iowa home? Get a free home value report  
Buying a Central Iowa home? Search all homes for sale

Today we are excited to talk about how you can put your tax return to good use towards a Central Iowa home. This time of year is when most people are getting their returns together. If you’re currently renting, it also represents a fantastic time to enter the world of homeownership.

Having that tax return is great for using as a down payment to work with, or to strategically pay down some of your consumer debt to enable you to have more money to work with for a mortgage payment.

So, why would you want to take the leap and buy a home? There are plenty of good reasons. When we consult with someone who’s considering homeownership, one of their biggest fears of the responsibility of having that payment. In reality, you are probably already making a payment when you’re a renter, just to your landlord instead of a mortgage company. Using this opportunity to buy can allow you to have your payment be for your own benefit, instead of someone else’s.

In many areas in Central Iowa, we are seeing some great appreciation in home values. Buying now is a wise investment, and will allow you to build your wealth over time. Right now, real estate is a very safe investment compared to the stock market and other venues.

If you’re thinking of buying or selling, or know somebody who is, give us a call or send us an email. We would love to speak with you!