What an interesting real estate market we are in right now! Inventory and interest rates are low, and so many Buyers are bidding for the same property.
It is critical to be prepared for this situation so that anxiety is minimized and you have a winning plan.
With the right REALTOR®, a solid plan, and preparation, you can win that home.
Does your REALTOR® have the business savvy to negotiate for you the home you want? Here is what you must consider prior to getting involved in a multiple offer situation:
1. Sellers do not always accept a full-priced Offer.
An amazing Buyer’s Agent finds out what the Seller wants in the Offer prior to writing it. Just because an Offer is cash or full price does not mean the Seller will accept it. Other considerations may be relevant, such as knowing the ideal closing date, minimal contingencies, and/or other factors.
2. Sellers are not required to negotiate with the first Offer they receive.
In a Seller’s market, the Sellers will often pick a date to review all offers. This creates a sense of urgency for Buyers to bring their best Offer. It gives the Seller time to review Offers and even make a counter-offer to the prospective Buyers. Having the right REALTOR® on your side is critical in this situation.
3. Show the Seller that you are qualified to buy a home.
Nearly every Offer will be accompanied by a letter from a Lender (or a Proof of Funds for cash Buyers). Ask your lender for a loan preapproval letter. This preapproval letter makes Seller’s perceive you as a stronger, more prepared and serious Buyer. Some Sellers are not considering Offers which do not include one of these letters.
4. Verbal agreements are nonbinding.
Unfortunately, verbal agreements are not legal in real estate transactions. All real estate transactions must be in writing. Any agreement or modification of any kind must be in writing and signed by all parties to be enforceable.
5. Be Nice.
Don’t ask the Seller to pay your closing costs unless it is critical to your ability to purchase. Don’t ask for the Seller’s personal property unless you know they are willing to part with it. Be certain you have the right REALTOR®/Buyer’s Agent who will pursue a friendly relationship with the Seller’s Agent as well. All relationships are important in making it to the closing table.
6. Have the right REALTOR®/Buyer’s Agent on your side
In order to negotiate and buy that home you really want, it is critical that you have the right REALTOR®/Buyer’s Agent that is familiar with multiple offer situations, is experienced with an escalation clause, and has the business savvy to negotiate so that the Seller is excited to accept your specific Offer.
We would love to be YOUR dream home finder! Contact us at Zina@gotoSTJOSEPH.com or 847.975.9425