Home Buyers – In a strong home seller’s real estate market, how do you win your dream home when there are multiple offers on the house? This is how…
8 Steps to Winning Your Dream Home
In a strong seller’s market like the one we are in, we have a huge shortage of homes on the market. The homes that do come on the market for sale, sell very quickly in hours. Those sellers typically receive multiple offers, too. I’ve seen 20+ offers on a house before. So it’s crucial that you and your offer stand out in a good way.
It’s a Strong Seller’s Market. In order to get any house, expect that the seller will get the price, terms and conditions they want. Be prepared to accept their terms. Let’s get you into your first choice and start building equity instead of settling for your second, third, fourth or even fifth choice and still having to accept the seller’s terms.
Get underwriting approval in advance. Get a lender that can get underwriting approval IN ADVANCE. This is completely different from a Pre Approval letter. This means you have a preapproval letter AND all your documentation has been submitted, reviewed and approved by the loan officer and then sent to Underwriting for their approval. Typically underwriting approves files within 2 weeks of closing so can you see how this will give you a HUGE leg up on the other competing offers? This is a huge game changer in a competing offer situation that most buyers do not take advantage of. This is the lender I trust, recommend and use.
Remove contingencies. How many? As many as you are comfortable with, which could includes: home & radon inspection, termite inspection, appraisal, inspections, radon inspection. Many buyers are not comfortable waiving home inspections. If that is a deal breaker, one option is to agree in advance to not ask for any repairs and if you aren’t comfortable with the inspection results, you can opt to cancel the contract. The other option would be to put a dollar amount on any repairs you might ask for.
Make a great first impression with your strongest & best offer. It’s a misconception that seller’s will go back to everyone and ask everyone’s highest & best. Yes, the seller could do this; however, they could just as easily accept one of the offers and not negotiate at all. Or they could negotiate with a few.So what is the best offer to submit? Submit the best offer you’re are comfortable with and if we find out later that they went with an offer that was only $500 more, would you have any regrets? If your answer is no regrets, that’s your highest offer.
Demonstrate financial security. Seller’s want to know that you aren’t going to get buyer’s remorse a few weeks after acceptance because you had to make such a quick decision after seeing the house for maybe 30 minutes. They don’t want to delay their moving plans or find another buyer. Giving this confidence is as easy as offering a higher than normal earnest deposit; offering a second deposit due after home inspection contingencies are removed; and consider making the earnest deposit non refundable. None of these cost the buyer money as long as you close on the house.
Seller choice of close date. Your flexibility on close date can be more important to some seller’s than a higher net. Find out their ideal move date or if they are flexible, offer seller’s choice of close date and put a time frame on it that also works for you.
Increase the Seller’s Net. This is what they walk away with after the sale. Setting yourself apart by offering to pay part of their closing costs shows you are creative and interested in a win-win situation.
Get good real estate representation. Not only do you need an agent that can get you out to the houses within hours of showings start, you also need an agent with a reputation of keeping transactions together and someone knowledgeable on winning homes in multiple offer situations.