Picture this. You are driving around the neighborhood of your choice, looking for the right house to turn into your home. And it’s your lucky day. You spot it and it is being sold at a reasonably great price. You and your realtor are about to make an offer for it when you are informed there are other offers for the house.
You step back and assess things. What should you do in a multiple-offer situation? And most importantly, what can you do to stand out and ultimately win the bidding war?
If you are looking for answers, you’ve come to the right place. Here are a couple of things you can do to sweeten the offer for your dream home.
- Include a substantial earnest money deposit
Show your enthusiasm and commitment to purchase the house by offering a large earnest money deposit. The typical amount usually ranges from 1% to 2% of the asking price. In this case, don’t hesitate to go slightly higher.
Such a sizable sum will not only make you look better than the other buyers. With a large earnest money deposit, you are also effectively putting more money down for house.
- Back your offer with a pre-approval letter
For a seller, multiple offers might be great, but the prospect of having buyers back out eventually can also be terrifying. Reassure the seller of your dream home by including a pre-approval letter from your preferred bank or lender.
If you want, you can also go one step further by getting pre-underwritten for a mortgage loan. A pre-approval letter already provides some assurance, but a pre-underwritten loan is almost good to go.
- Identify the seller’s priorities
In a multiple-offer situation, you want to push the right buttons. Sit down with the seller or their agent. Find out why they want to sell the house. Ask about their timeframe. Adjust your offer based on the answers you get.
For instance, if they need some time to complete their move, include a generous time allowance (at least three to five days) with your offer. If they want a fast sale and you can afford to purchase the house in cash, make an offer to do so.
- Remove some of the contingencies
Contingencies add to the total cost of buying and selling a home. It can even prolong the process, as some things take time to do. Study the contingencies with your realtor and determine which ones you can shorten or even waive altogether. Do remember, however, that you should never skip a home inspection.
- Make an offer just a little bit above the asking price
Another way to make your offer a little more attractive that the competition is to offer just a bit more than what the seller is asking. Ask your realtor for a comparative market analysis of the neighborhood to determine the price range of homes for sale in the area. This will help you pick a nice offer price that is still well within market value.
Preparing for a multiple-offer situation?
Do your homework with some of the best realtors in Scottsdale. Connect with our team at 480.359.6519 or info(at)urbanluxere(dotted)com to learn how to make a winning offer for a property for sale in the city of Scottsdale.