“Even 3% could be an attention getter,” she said.Ĭonsider increasing your down payment to stand out to a seller who has received multiple offers, said Alex Lacter, senior communications specialist at Zillow. Earnest money is a 1% to 2% deposit the buyer makes to show the seller that they are serious about their offer.īeing willing to make a larger deposit than the standard shows the seller that you seriously want the property, said Ms. One way buyers can make their bids stand out is to offer a larger down payment, or just a larger earnest-money deposit, said Kate Wood, a home and mortgage specialist at NerdWallet.
Offer a bigger deposit, down payment or an escalation clause
Short of paying cash or overstretching in a bidding war, here are four strategies to consider. While the Federal Reserve’s rate increases might mean the housing boom is on borrowed time, for now, many buyers continue to find themselves up against investors and all-cash offers. Of homes that sold, 61% had an offer price that was above the list price compared with 53% one year ago. On average, a home that sold in April had nearly six offers, up from around five a year ago, according to National Association of Realtors data.
New-home sales fell 16.6% in April from March to a seasonally adjusted annual rate of 591,000, the lowest level since April 2020, the Commerce Department said Tuesday, as higher mortgage-interest rates pressured buyers’ wallets.
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