In Multiple Offers ~ Be Assertive

It’s shaping up to be another active real estate market in South County this year.  Similar to 2013, homes are in high demand by buyers.  This condition, generally referred to as a Seller’s Market, results in more than one interested Buyer making an offer on the same home.
The goal of Sellers is typically to sell for the most they can and in a relatively short period of time. How do Buyers increase the likelihood their offer will be the one accepted when there are multiple offers?
Shop Within Your Means
     1.    Don’t assume cash will beat a financed offer.  At closing time, all money is cash to the Seller unless they agree to carry-back financing.
     2.    If you’re using a loan, get pre-approved based on your financial situation (income, down payment available, credit review, etc.) before looking.  Keep your monthly payment in mind so you don’t end up agreeing to an amount you cannot afford.  Avoid applying for, or financing any other purchases when buying a home. 
     3.    Consider homes that are BELOW your limit instead of at or over your preapproval / cash amount.  Sellers are not inclined to reduce their price in an active, multiple offer market and you may need your reserve to stay competitive. 
Make A Competitive Offer
     1.    Act promptly and decisively.  You must have a good working relationship with your real estate market and be diligent in viewing homes that meet your criteria.   In a highly competitive market, homes don’t linger. 
     2.    You, as the Buyer, determine the price you will pay.  If you really want the home, you may want to consider offering more than the Seller is asking.  When doing so, make sure you have adequate cash reserve in case the appraisal falls short of expectation.
     3.    Offer to pay more closing costs traditionally paid by the Seller.  Areas such as escrow and title fees as well as home warranties can mean a net savings to the Seller.
     4.    Consider how many days you’ll need to conduct your due diligence.  If you can clear contingencies quickly, this portion of your offer will be considered stronger than one seeking more time.
The decision of which offer to select lies with the Seller.  There is no guarantee that these approaches will get your offer accepted, but they certainly increase the likelihood.  Instead of a rejection, you may receive a counter-offer or, best of all, an accepted contract!
Work with your local real estate agent to create your path to home ownership if that’s in your plan this year.
As always, let’s foresee the possibilities . . . and get results!