These days many people find themselves competing with others who want to buy the same home. If you have not been in this position before, it can be a little bit uncomfortable and frustrating. So let's take a look at why this happens and how you can turn what seems like a problem into an advantage for you.
Why are there multiple offers on a home? Right now there are fewer homes on the market than in recent years, and with the spring market, buyers are coming out and are choosing from a more limited inventory. For homes that are in IDEAL conditions and in DESIRABLE neighborhoods, the likelihood is higher that sellers will be considering several offers at once.
Avoid the temptation to ONLY make it about price. Often times potential buyers will get into a "bidding war" on the property. While this is one way to do it, there are actually many other ways to make your offer more attractive and may even allow you to buy a home at a more reasonable price. Here are a couple of tips:
Flexible inspections and shorter deadlines. Oftentimes you can get inspections done more timely than other buyers. This sends an important signal to sellers. It says "I am serious." "I want to buy and get this done." Larger deposits / earnest money is another way to communicate your seriousness to a seller. Both of these techniques are simple. They do not cost anything. And yet they help sellers evaluate you in a better light. And by the way, this is where our experience comes into play. We know the local market and we have the experience needed to position your offer in the best light possible.
Get pre-approved. This is a must. Almost nothing increases the likelihood of a deal getting done more than a pre-approved mortgage. It is almost like being a cash buyer and it separates you from other offers. It plays on the seller's desire to have a bird in the hand versus two birds in the bush.
Writing a "clean" offer. This is where my experience can help you. I have the experience in helping you write an offer that protects you but does not add unneeded language that clutters up the offer and feels threatening to the seller. The idea is to spell out the terms of the deal without undue complication in a way that allows the seller to sense your sincerity.