Beat Out the Competition With A Winning Offer
You’re ready to buy a home. You even find one that you love 2 weeks into your search and even offer 5 percent over the listing price, just to make sure it’s yours and no one else’s. Then your real estate agent calls: 12 other offers had been made, and yours isn’t even in the top three.
When inventory is low, competition is stiff. A seller’s asking price becomes just that: an asking price. A seller may choose to price their home well below what the market will bear, with hopes of attracting multiple offers. As a potential buyer, you may be forced to compete with other buyers in a bidding war. Here are a few tips to beat the competition.
Make sure you’re working with a good agent that “gets it”. A seller is looking for a sure thing and a smooth, clean escrow. Experienced agents have relationships with inspectors, contractors, mortgage brokers and appraisers to help facilitate this process, not to mention good standing relationships with other agents. When faced with multiple offers, a seller, guided by their agent, may choose to work with a lower priced offer because that buyer has a good agent.
Get your financing in order before making an offer. This means being pre-approved for a loan and staying in regular contact with your lender during your search. You’ll need to be ready to move as soon as homes hit the market, having a pre-approval letter and financing in order will help you present yourself as a strong, motivated buyer.
When the opportunity comes, don’t wait. We hear this all this the time, “I wish I hadn’t waited on ‘Bleaker St’. Now it’s gone.” The buyers who don’t rest on their laurels get the home. If you’re serious about buying and have your financial ducks in a row, don’t wait for the open house, don’t wait for your husband’s mother to fly in from Utah to see it. Knowing what you need, and knowing what you want are two different sets of lists. If you see a home that meets your criteria, it’s likely that it won’t be there in two weeks, so be prepared to act fast.