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Here’s a quick guide on how to make your offer more attractive.
As a buyer, how do you win out in a multiple-offer situation?
When you’re in a multiple-offer situation, price is the first thing that comes to mind. Most sellers will want to get as much money as they can for their homes. Many times, this means making offers over asking price—no matter what that is. In our area, we’ve gone as high as $75,000 over asking price.
You can also make a large earnest money deposit to make your offer look more attractive. Hopefully, you opt for conventional rather than government financing, although if your agent understands how the process works, there are some good points to FHA loans if you’re a first-time buyer. Most sellers will want either a conventional loan or an all-cash offer.
Next, try writing what we call a ‘love letter’ to the seller—i.e., a letter describing you and your family, your interest in their home, how much you appreciate it, and how you see yourself living there. Sellers usually like to hear any type of compliments about their homes. After that, have your agent ask the listing agent what’s important to their seller. Are they looking for a speedy timeline or a longer one? Try to accommodate whatever it is the seller is looking for.
On top of everything we just mentioned, you should consider making an as-is offer, waiving inspections, or even waiving the appraisal (depending on how much money you’re putting down). In other words, if the home doesn’t appraise at the price you offered (let’s say $20,000 over asking price), will you be able to move forward with the transaction? These types of things are important to sellers too. They want the smoothest deals possible so they can close without any ruffles.
We feel very confident that we can help you win in a multiple-offer situation. Our team has been preparing for this scenario for the past year and a half, and we’re experts at crafting offers that put our buyers in the best positions possible to win. If you have questions about this topic or would like our help buying your next home, don’t hesitate to reach out to us. We’d love to hear from you.
Here are my answers to a few common questions about buying a home.
I’m back to answer a couple more of your great questions about buying a home in this competitive real estate market.
How are buyers winning in this strong seller’s market?
They’re getting creative. Having to sell a home makes you unattractive to a seller. Some are moving in with family temporarily until they do find a home, which puts them in the best position to write an offer. Some are temporarily renting and others are actually selling and renting their home back from the buyers for a period of time. If you have your home sold before you make an offer, you’re in a much better position.
Can you help someone navigate one of these situations?
Absolutely. As long as you’re not looking for a needle in a haystack, you have good odds of bringing your dream of homeownership to fruition. If you're looking for a really specific type of home, that might be more difficult, but it can be done. You’ll really have to stand out with a high offer, high deposit, and maybe even a nonrefundable deposit or waive inspections. There are a few different strategies we can help you with.
If you have any other real estate questions, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.