A common occurrence that many homebuyers are running into in today’s competitive real estate market is that of multiple offers. Here’s how the situation plays out: You find a house you love, your realtor checks to see if there are any other offers being made on the property, and you find out, yes indeed, there are two competing offers coming in about the same time yours. So what do you do next? Well, you plan to make the best possible initial offer, so that yours will be noticed above the rest. In order to do this, there are several things you should be considering. Here is how to make the most attractive offer to homeowners in a competitive seller’s market.
First of all, it is important to understand that different sellers will be persuaded by different things, but typically the highest and best offer will usually get the prize. Homes that are priced to move in a competitive market will see a lot of action within hours of listing it, so in order to stay competitive you have to stay on top of your game and tour homes as quickly as possible. Once you find a property that you love, do not wait, make an offer immediately. To do this, you MUST have everything ready to go. Having your earnest check and pre-qualification letter in your hands at the showing will give you an advantage over someone who has not yet completed those steps. Also being prepared to put more money down than is required for your earnest check will show the sellers that you are seriously committed to your offer. Since the earnest check is included in your down payment, you are really just paying what you would have to down the line in advance.
Waive or shorten any contingencies as much as possible. Many realtors will tell you these days that homeowners will barely even consider an offer that has contingencies attached to it. So, if it is possible to make the deal without them, that is your best bet. Also being flexible with the homeowners to allow them to have enough time to find other living arrangements will make your offer more attractive. If a homeowner feels pressured to move out before they have secured other accommodations, they might be hesitant to accept.
Lastly, write your best offer first. The days of low balling a homeowner in hopes of getting a deal are over! Although they may return someday, at the moment most homes that are fairly priced are getting what they are asking or more. If you play hardball the chances are good that your offer will be beat by someone else who is willing to pay what the homeowner feels the house is worth. Furthermore, we highly recommend attaching a personal offer letter to the seller with specific information about you, your family, and why you love the house. These letters are aimed making the homeowner feel like they know you and thus want you to have their home over someone else.