The problem? You know there are multiple other offers on the home. This situation can certainly make you feel overwhelmed, but there are steps that you can take to secure the home of your dreams.
See the Property in Person
No matter how tempting it is to try to be the first in with an offer, make sure you see the home first. In a seller’s market, home owners are aware that they will likely be receiving multiple offers and are unlikely to accept an offer simply because it was the first they received. Before you make an offer on any home, it’s best to see it in person first. Pictures are a great way to get an idea of what the house looks like. However, the photgrapher may have used a special lense that makes the rooms look larger, or edited the photos to hide defects or undesirable design features. Pictures also do not convey the location, the ambience of the neighborhood or the overall condition of the home. And, let’s face it, you can’t smell the pictures either!
Know Your Market
Another crucial thing is to know your market. This is as simple as talkng to our team or doing some research online.
You want to know what similar homes in the area are not just listing for, but what the final selling price was as well so that when you make an offer, it’s competitive but not too high for what the house is worth.
It’s also a good idea to research the market so that you can see if the home value has been increasing over the past years. This will help you to determine if it’s a good investment.
Show the Seller You Are Qualified
Get pre-qualified, or even better—pre-approved. Getting pre-approved with a local lender will show the seller that you are in an excellent position to get a mortgage in place immediately and are ready for a smooth closing after an offer is accepted.
Try to save up an ample down payment for the home. Your preapproval letter will show how much you are putting down. The higher your down payment shows the seller that you’re more than qualified to buy and that there won’t be any snags when it comes time for the purchasing process.
Work with the Seller’s Time Frame
It’s essential to work with the seller’s time frame. This can mean two different things.
First, make sure you put in an offer within the required time frame if there is one. Second, work with them to establish a closing date that works for them. Finally, if they need longer to close for some reason, try to be flexible because this could be the difference between them choosing your offer and going with another. Flexibility is often the difference between your offer being accepted or rejected
Don’t Wait to Submit an Offer
Once you’ve seen the home, submit an offer as soon as possible. Often you hear “I want to sleep on it”. My response is, “Do you want to sleep on it, or in it?”
Today’s market is moving quickly. If you love the home, chances are someone else does too. Waiting leaves the door open for other people to get the home instead of you.
The Highest Offer Isn’t Always the Best Offer
Remember that just because your offer is the highest doesn’t mean it’s the best. It’s also true that simply because someone else outbid you doesn’t mean they automatically won. For example:
Offer A is $80,000 over asking price, 60 dyas to close, and has an inspection contingency
Offer B is $30,00 over asking, 30 days to close, and has an inspection contingency with a $2,000 cap on repair costs
On the surface offer A looks fantastic, who wouldn’t want $80,000 over asking. However, the likelyhood the home will appraise for that much is unlikely. A longer closing in most circumstances is less desirable to sellers. Finally, an inspection contingency with a capped amount helps the seller predict teir final costs and assure them that the buyer won’t nickle and dime them to death.
Many things factor into what offer is chosen that has nothing to do with the dollar amount on the offer.
Steps to Win a Multiple Offer Situation
A multiple offer situation doesn’t have to mean you’re out. This article outlined the steps to take to win a multiple offer situation, and our team has the skills to navigsate each unique situation.
Before making an offer, make sure to see the property in person and research the market.
Show you’re qualified to purchase the home and be flexible with the seller’s time frame. Finally, submit your offer as soon as possible, and don’t panic if someone offers higher than you because you still have a chance at winning!
If you’re looking to buy or sell a home, contact me today.
