When you’re up against other offers for your dream home, what can you do to strengthen yours?
Now, typically we’ll contact the home seller’s agent to determine A) If the home is still available, and B) If you’ll be up against any other offers. We ask the first question because an offer might have just been accepted by the seller before the agent was able to change its status in the Multiple Listing Service. So what happens when there are offers from other buyers on the property you’re hoping to purchase?
First of all, we determine when the agent will be presenting the offers to the seller. This gives us a time frame to work within to put together an offer that might stand out in the seller’s eyes. Remember, the seller can only accept ONE offer. However he does have the ability to reject all offers or submit counter offers to all buyers. Yes, the seller is very much in control at this point.
That being said, here are a few things you want to consider that can help to strengthen your purchase offer when you know there will be others presented to the seller simultaneously.
1. It goes without saying, but make sure you’re pre-approved by a mortgage lender.
Of course, we make sure you’ve done this even before you begin looking for a home. This gives you confidence, as well as the seller, who knows you’re serious about purchasing a home.
2. Money talks.
Going in with cash up front also shows the seller you’re serious about purchasing their home. It’s not to say that you can’t take advantage of low or no money down mortgage loans, but you’ll want to try and put as large of a good faith deposit down as possible.
3. Money talks, part 2.
This is where you’ll want to really think about how much you want this home, and how much you’re willing to offer to outbid the other buyers vying for his property. Offering to pay part, or all, of the seller’s closing costs will definitely catch their interest.
4. Over and above.
If necessary, are you prepared to offer more than the listing price in an effort to win over the seller? There are many different thoughts on this, but it’s one that can definitely go towards winning the bid. One drawback is that your lender will still only provide you a loan based on the APPRAISED amount. Anything over that will have to come out of your own pocket.
That being said, you can give consideration to the fact that the property will rise in equity over time. So even if you paid a higher than Fair Market Value price to procure the bid, you’ll eventually make it up in equity. One word of caution however: Remember that you still have to be able to afford the home (and mortgage payments) once you close escrow.
We’re here to help you with all of your real estate needs.
Montemayor and Associates are a team of highly trained, experienced, licensed real estate agents ready to help you achieve all of your real estate goals. Contact us for a no obligation consultation at either of the numbers listed at the top of this page, or by using the Quick Response form below.Email Contact Form