How to Compete When There Are Multiple Offers
The house you thought was yours for the taking seems to have gotten other offers. How do you compete with these other buyers for the house of your dreams? Houses these days seem to be snatched right off the market as soon as they’re put on. What are the secrets of those who take homes so quickly? Here are some tips on how to compete when there are multiple offers on that house you’ve been eyeing.
Reaction time – While you’re actively looking to buy a home, so are other buyers. Also, the seller is waiting to receive offers on their listing. When you find a home that fits your lifestyle, financial and location needs, it’s important to be in a position to make an offer quickly. In this market, homes that are well-priced and in desirable neighborhoods don’t last long. Being prepared to make an offer includes working with a licensed real estate professional and being prequalified for a loan that covers the cost of the home you’re making an offer on. Having a prequalification offer letter from your lender is a big plus in your favor when other buyers don’t have this document prepared.
Know the area – You mustn’t forget to do your research. Review comps and know what houses like the one you’re looking are selling for. Where is the house relative to schools, shopping, or amenities? If the home is in an area where such landmarks are conveniently located there’s a good chance the home will have multiple offers in the current market. What does the yard look like? Is there a pool or a fire place? If the yard isn’t well taken care of, the house’s value may be decreased. You don’t want to over or underbid on your potential home, so know the facts.
Cash up front – Be ready to submit an earnest deposit. Your earnest deposit shows the seller you’re willing to put some skin in the game and you’re serious about your offer. Without an earnest deposit, many sellers won’t even consider your offer. The amount of the earnest deposit depends on the sales price of the home. Talk to your real estate professional about an appropriate amount.
When you’re ready to make an offer, your real estate professional will handle the paperwork. You’ll review what you’re offering and sign the documents before they are transmitted to the seller. They may be slow to respond to your offer but if they counter, don’t hesitate in sending your counter offer or acceptance.
There’s no guarantee you’ll win in a multiple offer situation but there are steps you can take to increase your chances. If you’re ready to start shopping for your dream home, contact THE CHRIS WYLIE TEAM today!