4 Important Tips to Assist a Buyer in a Multiple Offer Situation

4 Important Tips to Assist a Buyer in a Multiple Offer Situation

With home inventory being considerably low coupled with the interest rates being historically low, newly listed homes are being sold within a few days or even hours of being listed!  These newly listed homes are often receiving multiple purchase offers, which is excellent news for sellers. Having multiple offers, on the other hand, is not excellent news for buyers.  It is vital for a buyer that is getting involved in a multiple offer situation, that they have a great real estate agent representing them that has experience with multiple offer situations.  Here we share four important tips to assist that buyer in a multiple offer situation.

multiple-offersMake a Strong Offer
In a multiple offer situation, don’t low ball!  It’s distressing and frustrating to a buyer when they lose out on a home, but expecting to have an accepted offer while low balling is silly.  If a buyer is in love with a home and there are multiple offers, the buyer needs to know, they will have only one chance at getting that home.

Buyers that may require seller contributions need to be aware that it is a “give-and-take” situation.  A buyer that needs $5,000 in seller contributions should not expect to offer $5,000 below the listing price and also get the contribution from the seller, especially in a multiple offer situation!  If a buyer absolutely needs seller contributions, they should consider offering above the asking price, keeping in mind the home needs to appraise for the purchase price.

Have Fewer Contingencies
A buyer has the option to make a purchase offer contingent on several different items, some are more common than others. In a multiple offer situation, not having as many contingencies, can make one offer more desirable than the next. While it is not recommended to waive the opportunity to perform a home inspection, waiving a home inspection is very appealing to a seller.  The purpose of a home inspection is to ensure the homes current state for the buyer. By waiving a home inspection, the seller is now “off the hook” for any repairs that would be requested after an inspection of the home.  This does not mean do not have a home inspection completed, just don’t leave the seller on the hook for the repairs.

Get Pre-Approved, Not Pre-Qualified
There is a major difference between being pre-approved and pre-qualified!  Understanding the difference is extremely important.

pre-qualification is when a lender looks at a buyers financial picture based on what the buyer tells them.  In most cases they will look at the buyers credit information to make sure their credit scores are in line with the current mortgage guidelines.  The lender will then issue a “Pre-Qualification” letter, subject to verification of information once the buyer applies for a mortgage.

A pre-approval is a little more involved but is much more desirable when it comes time to negotiate on a home.  Getting a pre-approval includes a lender pulling a credit report, collecting pay stubs, bank statements, W-2′s, etc. and actually confirming employment status.  Most pre-approvals are as good as a mortgage commitment, and are generally only subject to an appraisal being done on the property.

Make a Large Down Payment/ Escrow Deposit
Putting a large percentage down towards a home can create an advantage for a buyer . Although the amount of the deposit can vary, the larger the deposit can indicate to a seller the serious intent of the buyer to purchase the home and can also indicate the strength of that buyer.

Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties. Employees of Title Junction can also act as a witness in courtesy closings as well as an escrow agent or a notary public.

Please contact Jennifer Ferri of Title Junction, LLC for further information @ 239-415-6574 or www.title-junction.com

Posted on October 17, 2014, in Title and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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