As home prices rise and the inventory of homes for sale shrinks, investors and homebuyers realize they have to adapt to a market in which sellers call the shots.

Fall in love with a place or investment property that fits your budget, and get in line with other buyers bidding on the same home. That’s how the story goes for buyers in competitive markets.

“I believe there are many outside the box strategies to get into the decision makers heart to pick your offer – Camilo Palacio – Cash Flow Properties, LLC

Unlike shoppers at a high-end store, homebuyers in hot markets may need more than just money to get what they want. They must give sellers enough reasons to pick their offer over offers from other bidders.

In the next 5 blog posts I will be adding quick and easy tips on how your offer can stand out of the competition!

When purchasing investment cash flow properties either to fix and sell / flips, fix and rent or even your own home to live in it, many buyers think they can save their highest and best offer for the end, when the seller presents a counteroffer. But sellers can simply accept the highest offer and reject the other offers without further negotiations.

One of my best ways to send an offer and stay in the game is to add an escalation clause to your offers.

“You place an offer, and your offer is X, but you have a clause in there that says you will increase your offer by an X amount over any other bid up to a certain point. So for example, I’ll go in and offer full price with an escalation element of $2,000 up to whatever amount you determine.”

It’s a safer way of making your offer stand out by letting the seller know you are willing to pay more for the house, without the risk of offering more than what is needed to get a contract. If the escalation clause is triggered, the sellers generally are required to show the other offers to the buyer. For you to do this, the property has to obviously have good enough equity for this to make sense and still make a great profit on your purchase.

In our wholesaling program we go more in detail how you can make a lot of money by finding properties under market value. If you are interested in learning how you can do this, visit our website and sign up for a one hour free real estate investing training absolutely free.