During the spring and summer of this year, lots of buyers have come across properties that are listed and end up being in multiple offer situations. With the lack of inventory and increased buyer demand, it’s become inevitable and unfortunately very common. So what does it take to get your offer accepted besides the obvious of offering the highest price? Here are three tactics to try when in a multiple offer situation.
Limit concessions/closing costs requested
For most buyers, requesting closing costs is a normal part of the process of buying. It’s where you allocate a portion of the offered price to purchase for your costs associated to closing (insurance, taxes, lender fees), instead of paying them out of pocket. The more money requested for closing costs, results in the seller receiving a lower net. At the end of the day, the seller wants to receive the highest net price for the sale of the home.
Get Loan approval before viewing homes.
Some lenders have programs in which your file and loan can actually go through underwriting to receive an actual approval before finding the home. This helps because in most cases, you can likely close faster, as fast as 21 days in situations. Theres no guarantee in Real Estate, but an actual commitment from a lender will set you apart from the rest of the pack. We have lenders whom can get you a loan approval before you start home shopping.
Contingency dates and Deposits
Another thing that can make your offer stand out is a strong deposit. There is really no set amount on what is required for a purchase, but a large deposit (or a second deposit) shows a stronger buyer and true seriousness. After all, these funds are a part of your down payment for most loan products.
You can also help your cause by scheduling a fast home inspection and/or faster mortgage approval date. What this does is shows the seller that you are moving quick and getting things done. In the event the deal doesn’t work out, the seller is able to get the home back on the market asap.
I hope that these quick tips can help you secure the property that you like. The market is really active and competitive but all you can do is put your best foot forward and keep the faith.