If you’re looking to purchase a home in a competitive market, you may find yourself in a multiple offer situation. This occurs when more than one buyer submits an offer on a property, and the seller must choose which one to accept. In such cases, it’s important to understand the key considerations that can help you make a winning offer. As a buyer, you want to stand out from the crowd and increase your chances of securing your dream home. To do so, here are ten important factors to keep in mind when submitting an offer in a multiple-offer situation.
Here are 10 Considerations for Buyers in a Multiple Offer Situation
- You may want to consider offering your highest and best right away in a known multiple offer situation. Now is not the time to make a lowball offer.
- Know your bottom line. Review your budget and be clear on what you can afford to avoid making emotional decisions.
- Know your maximum dollar you want to spend on that property. Have your agent go over comparable property values with you. If you are financing with a mortgage the lender will also ensure the property is valued at the amount you are borrowing.
- If you are restricted by budget, there may be other ways of increasing your chances of success by sweetening the deal with other offers such as allowing extra time after closing for the sellers to pack and move.
- Choose an experienced agent who is an excellent negotiator and communicator.
- Meet the deadlines set by the participating agents. Ensure you have a Buyer’s Agent who is organized with good follow through. A missed deadline or not following submission guidelines can cost you the deal.
- Increase your earnest deposit. A larger amount put into escrow can communicate the seriousness of your desire to purchase.
- Cash deals might have a better chance if the sellers are looking for a clean, fast sale.
- If the seller counters, consider flexibility on any requested contingencies such as a larger earnest deposit.
- A good agent will always ensure you are pre-approved for a mortgage before showing you homes but it is especially important in a multiple offer situation. Proof of funds will be key.
The Columbus Team works with buyers and sellers, they have years of experience with all considerations for buyers in a multiple offer situation. If you’d like their skill to work for you, give them a call when you’re ready to make a move.