In a highly competitive market, what does it take to have a winning offer?
We get this question all the time, and we wanted to take a look at some of our own data to see what insights we could find.
Insights from Our Own Listings with Multiple Offers
Over the last year, we had 11 listings located here in the New Trier School district that received multiple offers. Here are a few stats that we were able to pull from those listings:
In total, we received 48 offers on 11 listings. That’s an average of 4.4 offers per listing. You can see why it’s important to understand what you might need to do to have a winning offer.
56% of the 48 offers were cash or the buyers waived their financing contingency
79% of the offers were “as-is”
Winning Offer Stats
Now, here is what we found to be true of the winning offers:
On average, the listing sold for 9% over the asking price
Every winning offer was “as-is”
The highest priced offer won every time
Offers with a financing contingency never beat a cash offer or an offer that waived the financing contingency, and this was true across all price points.
Tips for Buyers: How to Make a Winning Offer
So, if you’re a buyer in a highly competitive market like New Trier, here are a few ways to position your offer for success:
1. Waive Your Financing Contingency or Use Cash
First, do whatever you can to either have cash available or waive your financing contingency. If you don’t have cash available, there are many things you can do with your lender to give you the confidence and ability to waive your financing contingency.
2. Offer “As-Is”
Second, your offer needs to be “as-is”. Every winning offer we received was “as-is” and nearly 80% of all offers were “as-is”. Be prepared to accept the property’s condition without asking for repairs.
3. Be Willing to Push on Price
You really need to push your limits on price. We tend to see offers grouped around certain price points, but the offer that pushes just a little higher is typically the one that wins. You need to reach a price that feels slightly uncomfortable but still leaves you happy if your offer is accepted. And the reality is, a few months after closing, what might have seemed like a crazy price at the time often turns out to be a genius move.
Your Team Matters
While we just shared what it takes to craft a winning offer, you still need to craft the winning team to make it happen. Working with an experienced local agent is the best way to navigate a competitive market. Securing your dream home isn’t easy, but with the right strategy, it’s absolutely possible.
If you’re looking to buy or sell, feel free to reach out and we would be happy to help!
Check out the video version of this blog below.
