In today’s HOT real estate market with more buyers than houses you often see multiple offers and frustrated buyers.
However, with the following helpful hints and with proper preparation, you can avoid much of the anxiety and disappointment so you can WIN your next multiple offer situation.
1)Understand the Process: By understanding the multiple offer process ahead of time, it allows you to think logically about the contents of your offer. You want to avoid all surprises on offer day, so be prepared
2) Get Pre-Qualified: Meet with a mortgage specialist to understand your financial parameters so you have a clear understanding in case bids go over asking. Don’t spend what you are not pre-qualified to spend.
3) Understand market Value: When submitting an offer on a home, it is most important to know what other homes have sold for in the area so you understand current market value. You never want to submit a blind offer as you will surely overpay.
4) Forget about the list price: Many sales agents list homes well below market value to generate a buzz around the property. This creates a false sense of value and often confuses the buyer. FORGET ABOUT LIST PRICES! Many buyers get too attached to list prices and fail to investigate market value correctly. Submit offer prices based on market values, not list prices.
5) Try to arrange pre-Inspections: When you are buying a home you should have the property inspected by a certified home inspector. This becomes a problem in multiple offer situations as sellers don’t like to see conditions and is often the reason buyers lose out. Schedule a pre-inspection so you can remove the inspection condition with confidence.
6) Develop a sound strategy: Price, Conditions and Closing Date are the three significant parts to any offer. Decide where you can be flexible and develop a strategy around that. You dramatically increase your chances for success in a multiple offer situation if you can be flexible in all three areas.
7) No Regrets: Once you understand the multiple offer process completely and have developed a sound strategy, submit your best offer with no regrets. I often tell clients to imagine waking up tomorrow and you didn’t get the house. Will you feel upset that you lost the house? Will you feel upset because you didn’t offer more money? If you were the winning bid, would you have remorse over how much you paid for the home? It is important to think about tomorrow so you can WIN today.
If you have more questions about how to WIN your next multiple offer situation, feel free to give me a call and we can sit down for a chat. Multiple offer situations do not have to be a difficult part of the process if managed correctly. So give me a call as I am always happy to help.