Having multiple offers on a home for sale is pretty standard nowadays, especially in a hot seller's market. While that’s great news for sellers, it isn’t that great for you as the homebuyer. You see, everyone is itching to get a shot at their dream home, and you need to be prepared as a buyer to out-maneuver other buyers in the market.
Here are a few tips to help you win in multiple offer situations as a buyer:
Getting pre-approved shows commitment and indicates that you are a purchase-ready buyer. Most sellers will prefer to negotiate with a pre-approved buyer because a pre-approval carries the same weight as a mortgage commitment.
Have An Experienced Real Estate Agent Represent You
Seasoned real estate professionals have a great deal of experience representing clients in multiple offer situations, and having one on your side can be a big plus. They can advise you on the best offer to put in, help you evaluate the likelihood of other buyers closing before you, and represent you in the often-stressful negotiations. A real estate agent can also review the contract terms and help you avoid hidden clauses that might complicate the transaction down the line.
Get Personal With The Seller And Play Nice
Sometimes, it doesn’t hurt to pull some heartstrings. Other buyers may table the best offers, but sometimes the seller just wants a buyer who appreciates their home as much as they do—especially those who have lived in their house for a long time. If you’re working with a real estate agent, they will know how to pursue a friendly relationship with the seller and their agent. That can go a long way in helping you secure a deal.
Try To Be On The Same Page With The Seller
Being on the same page with the seller means understanding their plans and what matters the most to them. With the seller’s plan in mind, you can make an offer that stands out. Your real estate agent can do some homework and obtain important information about the seller’s plan. For instance, do they want to close fast? Do they need some time before they can move out? Do they expect the buyer to pay the closing costs? Having this information forehand can help you table an offer that is appealing to the seller.
Make A Large Earnest Money Deposit
Submit a sizeable earnest money deposit to indicate your seriousness to the seller. The earnest money deposit is part of your down payment, and putting down a considerable sum shows you are less likely to default on the contract once the seller has accepted your offer.
Submit Your Best Offer
Buyers often hold off their best and final offer, but low-balling in a competitive market is setting yourself up for failure. You should submit a strong offer you can reasonably afford from the start. Sometimes it should be slightly above the listed price. Try also sweetening the deal with attractive terms where plausible. For instance, you can waive certain contingencies, offer to compensate the seller the difference between the appraisal and home sale price, and shorten the closing period if possible.
Be Proactive And Available
Try to be at the seller’s beck and call in case they have questions about your offer or need you to sign some documents. Whenever the seller or their agent needs your attention, be flexible enough to accommodate their needs. Listing agents and sellers love working with buyers who show high levels of enthusiasm.
In case you find yourself competing against multiple buyers, no need to worry. Multiple offers on homes for sale are pretty common in today’s real estate market, but you don’t have to lose out on your dream home. If you need help buying a home in New England, talk to Century 21 North East today!