Successfully home buying is tough when you’re competing against multiple offers, but it’s also very likely that your offer could stand out to win if you have the right strategy.
Here are some tips:
Make a strong offer
In a multiple offer situation, don’t low ball! Don’t expect to win in a multiple offer situation when submitting a very low offer. You are losing the opportunity of getting the home you want.
Start with price but don’t end there
The offer with the highest price is going to get the seller’s attention, especially if it’s close to or above your asking price. However, be cautious you don’t want to pay a lot more that what the market value is reflecting.
Earnest Money
A buyer who is buying a home must provide with an accepted purchase offer a deposit, known as an earnest money deposit or good faith deposit. This amount is not set, however in a multiple offer situation, a large Earnest Money Deposit will be more attractive to sellers as an indicator of buyer’s firm determination to purchase the property.
Contingencies
Offers will include conditions that if not met will allow for the deal to get canceled. Limit the contingencies to only the most significant and necessary without putting a burden in your transaction.
Down Payment
In today’s real estate market, a diversity of financing programs are available for all type of buyers with or without down payment. However, a large down payment is always appealing to sellers as well as increase the likelihood of an easier and stronger commitment from the lender to grant the loan.
Closing periods
A buyer who’s willing to close within weeks is more attractive than one who needs or wants months to do the deal. Find out as much as you can about the seller’s situation an offer a flexible timing for the sellers, that could make a big difference as well.
We know only one offer can be accepted in a multiple offer situation. However, the most important advice is to work with an agent that knows how to deal in this type of market to bring expertise and negotiation skills to the table.
An agent you can trust and know will be doing the best to get the home you are wishing for.
Sandy Flores, Broker bringing people and homes together!
