How to Compete in Multiple Offer Situations
When inventory is tight, competition between buyers significantly increases. In fact, with as few choices as are on the market right now, it isn’t uncommon for us to see 30 or more offers on a single home.
This can be extremely frustrating for buyers. Sometimes against that much competition, it can feel like the best thing to do is to simply give up and walk away without even making an offer.
But today I have a few tips I’d like to share with you that will help your offer stand out above the rest.
First of all, earnest money is incredibly important. The more earnest money you put down, the more serious you will appear to the seller. In the $350,000 range, for example, the majority of buyers tend to put down $1,000 to $2,000.
But, when your down payment on a home like that can run you $75,000 or more, why not put down the extra money to show you’re truly interested? When you get the closing table, your earnest money will simply count toward that down payment.
Putting more earnest money down won’t cost you any more than you’d already be paying for that down payment. So, why not make your offer stronger by putting down as much as you can?
Additionally, your offer will be contingent upon inspections and the approvals of those inspections. Therefore, you can be sure your money won’t vanish if something about the property isn’t as it should be.
Secondly, approval letters are great. However, every other buyer making an offer on the property will have one, too. So my team and I like to recommend that buyers take one extra step that we call “the golden ticket.”
When you talk to our preferred lenders, Veritas, they’ll provide you a full, free-of-charge underwriting. This document shows the seller that you are essentially a cash buyer.
Including an additional, more personal letter to the seller that explains why you love the home will also give your offer a huge boost. When you talk about your family and why the home is important to you, it makes your offer truly stand out.
Also, understand your time frame. When you already have your approval letter, you don’t need the additional 21 days it takes to go through the loan process. Talk to your lender and have them work your appraisal and inspections right out of the gate. Lining these things up ahead of time will really expedite the process.
Speaking of time, whenever you buy a house it’s natural to want to move in right away. Understand, though, that sellers have to move too. Remember not to rush the seller. Being patient and considerate of the seller is just one more thing that will help you win in this market.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.