So you’ve already found that “perfect” home, fell in love with it, and you’re ready to make an offer – only to find out that you have to battle it out with other buyers! Multiple offers happen when more than one buyer is interested in the property and makes an offer. Oftentimes, sellers receive multiple offers when there’s little inventory which can be emotionally draining for buyers. It is understandably frustrating to have your heart set on a specific home and then lose it in the end. How do you win a multiple offers situation then? How do you bag that dream home?
Make sure to write the most competitive offer! Making an offer requires a lot of things. You have to be prepared, be creative, and to some extent, be willing to compromise. Here are some of the things that you have can do to make the competition tougher for your rivals.
Find the right real estate agent.
Being as stressful as the offer process is, having an expert at your side would somehow make things easier for you. Someone who has experience with multiple offers situations, knows the market and would guide you from the beginning until the end. Choose an agent that you can trust to make good judgments and provide sound advice.
Provide your best offer.
In writing your offer, you have to bear in mind that you’ll only be given one shot at getting that home. You have to give it all, decide on the highest price that you could possibly offer and don’t hope for negotiations. Your agent can help you with determining the best price that you could offer the seller. You can ask him/her to do a comparative market analysis, review comparable sales for you to be able to determine the actual value of the property and come up with a decent offer. You can also try to find out other ways on how to add strength to your offer. You can have your agent find out what the seller’s priorities are, what his/her needs are, and try to meet them.
Prove that You Are a Serious Buyer
One of the worries that a seller faces is that the buyer that he/she chose to sell their home to may back out that is why it is very important to convince the seller that you are a serious buyer and that you are capable of buying the property and meeting the terms. One way of doing that is by submitting a large earnest money deposit, or a “good faith” deposit. The larger the deposit, the more serious the buyer is.
Also, having a pre-approval letter ready is definitely a plus since it only proves that you can afford the property. Find a lender with a good reputation, preferably a local lender because they’re usually easier to work with. You can also explore different types of financing as it may also impact the seller’s decision.
Skip Unnecessary Contingencies
Dropping some contingencies may be risky, however, an offer with fewer contingencies can be more appealing to the seller. You should consult with your agent whether to remove some contingencies or not and try to limit them. Make sure that when you submit your offer, you include every necessary detail and submit them together in a logical way. You may possibly inspect the property before having your offer accepted so you can drop the physical inspection contingencies.
Writing an offer can really be exhausting especially if you really place so much effort on it but can also be very rewarding if you end up getting that dream home. Working with the right person is paramount and would determine whether you’ll end up on the winning or the losing end. You have to be prepared regardless of what the outcome would be and live with it.