In today’s real estate market we are experiencing a very low inventory with a large supply demand, which puts us in a seller’s market.
This is good for sellers but not so good for home buyers. When the home is priced right, sellers are seeing multiple offers coming in on their home and in a very short period of time.
With this being said buyers will want their offer to stand out above the crowd, grab the seller’s attention and tell them, “choose my offer”.
Here are the 5 things for best practice in multiple offers
Highest and Best
Come in with your highest and best offer, you will have no time to throw in a low offer just to see the reaction of the seller and possible pick up the home below asking price.
You will want to submit your highest offer, with the maximum price you are willing to pay for the home. At the same time, don’t get all caught up in this and start offering 10% & 20% above the list price, if the home was price right from the start, there may not be a huge room left, before over shooting the appraisal value.
And for the second half of highest and best offer is…your best offer, this can be in terms, payment method (mortgage or cash), a quick close, etc.
More Earnest Money
Increase your earnest money deposit. If you really want to catch the seller’s attention, offer with a higher than normal earnest money deposit. This will show the seller you are serious and you are not messing around.
Normally you can see earnest money deposits as low as $500, up to 1% of the purchase price. Moving your earnest money above this norm will increase your chances of acceptance. Seller’s like seeing that the buyer is willing to put more skin in the game right from the start.
Have a pre-approval letter from your lender. Yes, you are supposed to have this anyways, but you would be surprise on how many offers get submitted without this valuable piece to the puzzle.
Have your bank or mortgage person right an approval letter the day of the offer with the date and the property address. You will be surprised on how much weight this will have with the seller.
Keep it Simply
Keep the offer has simple as possible. This is getting back to your best offer. There are several methods of doing this. One way is to close has quickly has possible. Some loans on average are taking up to 30 days; some has long as 45 days. If you can trim this down to 20 days for example, the seller will appreciate this, because they will get their money quicker.
If you don’t need assistance with closing cost, then don’t ask for seller’s concession in a multiple offer scenario. This will make your offer more appealing to the seller. The bottom line is, the seller is looking for the offer that may net them the most in the quickest and less hassle situation.
And lastly, send in a short personal letter from the buyer telling about you, your kids, how you are tired of renting and how you fell in love with their home…you get the picture.
But keep it short, sweet and authentic. If there are two offers sitting on the table that are very similar to each other, but one offer has a brief letter telling about themselves, their family and why they want to purchase the seller’s home, this may and could be the deciding factor for the seller.
Increase Your Chances Of Acceptance
Real estate here in Utah has become very beneficial to sellers and competitive for all buyers…being first time home buyers to move up buyers. If you are very pro-active in your home search and follow the above advice, your chances of getting your offer accepted by the seller will increase dramatically.
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Todd Rodocker specializes with first time home buyers, seasoned buyers and investors. He can be contacted firstname.lastname@example.org, cell 801-694-0903 or by visiting his websites http://www.utahrealestatestore.com http://www.UtahHomes.kwrealty.com