Here’s what you can do to stand out in a multiple-offer situation.
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In today’s market, the housing inventory is very low and there are plenty of buyers out there looking to purchase a home. This often results in multiple offers on properties. If you anticipate competing against multiple offers, here are a few ways that you can stand out from your competition:
1. Talk with a good mortgage lender. They will be able to give you a pre-qualification or pre-approval letter to submit with your offer. If you’re a cash buyer, you’ll still want some sort of proof of funds as well. The seller is going to want to see that you are indeed a qualified buyer.
2. Price. This is one of the biggest parts of your offer. A good agent will look at the comparable sales and help you present a good, competitively priced offer without overpaying. At the same time, if there are multiple offers, there’s a good chance you’ll have to offer full price or even a little more.
3. Add a clause to your offer. An escalation clause will offer an additional amount of money above the highest bidder up to the maximum amount you feel comfortable with.
4. Gather information about the seller. This includes their motivation, time frame, why they’re selling, and how many other offers you’re competing against.
Consider writing a letter to the seller to further help your offer stand out.
5. Closing date and occupancy date. If you know the seller prefers to close in a certain time frame and you can meet it, that will make your offer much more attractive to the seller. You might even consider giving the seller some time after closing to vacate the property.
6. Keep your offer as clean and simple as possible. Three main contingencies are part of nearly every offer: inspection contingency, appraisal contingency, and final loan approval contingency. Try to keep your offer to these three contingencies because anything else might make it less attractive to a seller.
7. Write a letter to the seller. You can appeal to their emotions by telling them how much you love the home and why you and your family want it.
If you have any questions about competing against multiple offers or anything else related to real estate, don’t hesitate to reach out via call, text, or email. I look forward to hearing from you soon.