For months, your dominating thoughts have been finding that one home that fits all your hopes and dreams. Then one day, you miraculously find… THE ONE.
Open gourmet kitchen.
Humongous back yard.
Luxurious master bath.
Everything fits you to a T.
You’ve found the home of your dreams and don’t want to lose it to other buyers. Inventory is low.
There are so many people that are looking for a home that has it all, especially if it’s located in a sought-after neighborhood such as Alamo Ranch, Cibolo Canyons, Stone Oak, Rogers Ranch, or Canyon Springs; you can expect to compete against several offers.
How can you prepare yourself to win a potential multiple offer situation?
Finding yourself in a multiple offer scenario can be very stressful. You and your real estate agent can devise a plan to help your offer land on top.
The following are some strategies that will help set you apart from the competition:
Pre-Approval over Pre-Qualification
A pre-approval letter from a reputable lender who has requested and reviewed your documentation before providing the pre-approval letter may separate you from your competition.
Since you will have to provide this documentation as your lender prepares your loan documents, doing this earlier in the process will speed up the purchase and show your commitment.
Type of Financing Matters
Different types of financing have different requirements and costs that can sway a seller to accept or reject your offer.
A cash offer can close quickly, will cost the seller less in closing costs, and have many less requirements.
Conventional financing with a higher down-payment is strongly suggested as the seller closing costs will be less, and have far less requirements that may delay the closing than FHA or VA financing.
Pay What the Property is Worth to You
After considering the fair market value, decide how much you’re comfortable with offering in advance, and stand your ground.
It’s okay to offer slightly more than the list price if you really love the home, especially if you’ve been looking for awhile.
Don’t let the emotions from a “bidding war” cause you to regret your decision later.
Consider Higher Earnest Money
A higher earnest money deposit will show the sellers you’re serious. It displays financial strength and a commitment to complete the purchase.
Make the Offer Clean
The less seller requirements that you ask for, the better.
Find out what matters to them and take that into consideration when preparing your offer.
- Don’t ask for the seller to pay for some of your closing costs
- Purchase your home warranty yourself
- Pick a closing date that is advantageous to the sellers
Having a REALTOR® that is experienced in multiple offer negotiations will provide you with a distinct advantage. Good luck with finding your home.
If you are in the San Antonio area and looking to buy a home, I’d be more than happy to help.