You may have heard about the current buyers market when it comes to properties. Media makes it seem like you could find great bargains all over Western New York. Maybe you’ve had your eye on a certain home and are looking to buy it now for half the price, with renovations and closing costs all shouldered by the owner.
It’s a nice scenario but it isn’t really all that common in WNY. Buyers may inquire about a home and be surprised at the number of offers on the table. There may be a number of reasons for this.
Why Your Dream Home is Getting Multiple Offers
It all boils down to the fundamentals. Perhaps the property is selling at the right price given what it can offer, what the market conditions are, and what nearby houses are selling for. Buyers will not simply make an offer without studying their options. They have done their homework and found that the home is worth their money.
Winning in a Competitive Bidding Environment
Despite the overall market condition, there are certain areas where purchases can still be competitive. You need to prepare well in order to succeed in such a situation. You will require a number of things including a good understanding of the market, mortgage pre-qualification, an attorney, quick closing dates, a veteran agent, a clean offer, and a good price for the seller. You need to entice the owner while still being realistic about what you can provide. Do not promise anything that you can’t deliver or that will be detrimental for you in the long run.
How a Seller Decide on the Offers
Seller will compare all the offers to find the best deal. There are certain vital points that will be considered. Do well in these and your bid will be competitive. There are more ways to improve your chances than you think.
Meet with your agent to discuss comparable sales in the area. His or her experience will be invaluable when coming up with a good bid for the house. This should be a balance between your financial standing and your desire to purchase the property.
Don’t be tempted to make an unrealistically high bid. Remember that just because there are multiple offers on the table doesn’t mean things are automatically skyrocketing. Some of these may even be below the asking price but are still in it for the chance.
Owners are partial to cash for obvious reasons. There is greater assurance that they can get the amount they want right away. If offers involve mortgage, then conventional ones will be more desirable because of easier processing. VA and FHA mortgage have complex financing requirements.
Most buyers will make offers with contingencies to secure their own positions. For instance, they will only provide the payment once they have inspected the premises or had a review of the pertinent documents. Sellers understand these but they are more likely to pick a buyer with little or no contingencies to complicate matters.
Get your home inspector ready so that you can cut your home inspection timeline from one week down to 3 days. Highlight your mortgage pre-approval as it moves up the closing date. Make the transaction as easy, fast, and painless for the seller.
Ask your agent about the acceptable deposit in the area. Geography is the biggest consideration for this. Stick to the norms or go just a little bit higher to make a good impression. Let the seller know that you are serious about this bid.
Letter to the Owner
Send a letter detailing your intention to purchase the house. This bit will not cost you anything except time but it can make a remarkable difference. Let the owner know more about you and why you love the house so much. List the things about the property that made you decide to throw your hat in the ring. Assure them that you will take good care of the house if your offer is selected.
Buyers usually refrain from homes with multiple offers just because of the complications. Sometimes it is difficult to hunt for the ideal house. Once you find one, you have to exert all efforts into getting it. Certain neighborhoods take years before a house gets listed on the market so maximize your opportunities.
Multiple bid situations are not as intimidating as you think they are. Just be aware of the risks and the ways that you can boost your chances. Work with the tools that you have to create the best bid your can provide. Multiple offers on the house I want? Not a problem when you know how to deal with it. Craft a plan with experienced professionals including an agent and an attorney. Go all out to get the house of your dreams.