The real estate market is crazy right now, especially in certain areas and price points. It can be difficult to find a home in our area that meets your criteria, and once you do, you’ll probably notice that many other buyers are looking for the same thing.
If you end up in a multiple offer situation, there are a few things you should take into consideration in order to make sure your offer stands out.
Of course, the first thing everyone thinks about is the price. Price is important, but it’s not the only factor to pay attention to. If you are at a price point with a lot of buyers, go in with your highest and best offer.
This can be tough because everyone wants to negotiate and try to get the best deal. Think about it this way, though: How upset would you be if you lost out on this home? Some people may have another home in mind and may not panic if they lose out on this home. If it’s the only house on the market that you like, though, I’d hate for you to get beat out by $500. So, you may wind up paying more than you plan, but at least you’ll get the house you wanted.
Speaking of overpaying, remember that if you use financing to purchase your home, then your lender will order an appraisal. If the home doesn’t appraise, you can always negotiate with the seller or walk away from the deal.
However, if you can pay out of pocket over the list price, you can make your offer not contingent on the appraisal. That way, the seller doesn’t have to worry about the home failing to appraise and going back on the market—and your offer looks more appealing to the seller.
Also, if you have enough money for your share of the closing costs—that’s great. It is okay to ask the seller to cover closing costs, but keep in mind that the seller will look at the price and the concessions you ask for before deciding which offer to work with. Some concessions may include things like the refrigerator, patio furniture, rugs, and bar stools. The cleaner you keep the offer, the better.
Usually, you would ask the seller to cover the home warranty. Home warranties run about $500 to $700, so if you can, go ahead and pay for it instead of asking the seller to. The seller will look at how your offer affects their bottom line versus competing offers.
Finally, consider the closing date. Be as flexible as you can. If you absolutely have to close on a specific date, then maybe your price has to be more competitive. If the seller is building a home, be flexible with the closing date or when the seller has to move out. Maybe you agree to close in 30 days but give the seller an additional month or two to move out of the property. That way the seller doesn’t have to move twice, which could put your offer over the edge.
Hopefully, these tips will help you win the home of your dreams. Our team also has some unique ideas that have helped our clients in multiple offer situations, so if you have any other questions, give us a call. We would be happy to help you!