What happens when you find the perfect home and discover that several other buyers are placing offers on the same property?
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.
You’ve listed your property and everyone who has seen it, LOVED it and now you’ve got multiple offers on the table. It’s what every seller dreams of! Multiple offers may not be as cut and dried as you imagine so here are some considerations to prepare you when you have multiple offers on your property.
10 Considerations for Sellers in a Multiple Offer Situation
- Work with a trusted agent who can guide you through this process efficiently.
- Understand that you are in the driver’s seat and ensure your agent gives you enough time to review, reflect and respond on the offers.
- Remain calm and focused on your goals. The highest offer is not always the best choice.
- Review the merits of each offer carefully to determine which one is in your best interest. The highest offer isn’t always the best deal.
- Consider the closing date. Will it work with your schedule?
- Have they offered a longer time in the house after closing if you need it for moving preparation?
- Earnest Funds. Have they offered a solid amount for escrow that is reflective of their seriousness in purchasing the property?
- Are they requiring they sell another property first? Are their requests they are making that may make your move uncomfortable or inconvenient?
- Is it a cash or mortgage deal? If you are in a hurry to move securing a mortgage can delay the closing longer than a cash deal will.
- Have they requested inspections? There may be some repairs you will be required to complete. Is there enough in the proceeds from your home to cover these costs? For example, if you need a new roof valued at $10,000 and one buyer is offering you $5000 less but they are willing to cover the cost of the roof versus the buyer offering $5000 more but wants you to pay for the roof. The lower offer nets you more money from the sale.
Most importantly, ensure your trusted agent is reliable, meets deadlines, and has excellent communication skills. Juggling multiple offers can be quite challenging. You want to ensure your agent is focused and crystal clear on your goals and expectations. Experience is very important when dealing with multiple offers.
If you want experience on your side, call The Columbus Team to list your property.