As a buyer, it can be very frustrating to end up in a multiple offer situation. However, there are three things you can do in order to win the house of your dreams:
1. Be pre-approved for the loan before making an offer. When you get pre-approved, make sure that you go through underwriting in addition to handing over all of your documents to the lender. The process takes about a week, so if you have the time, do not skip this step. Getting pre-approved doesn’t cost you anything and a pre-approval gives you an edge over your competition.
2. Put up more earnest money than the other buyers. Typically, your earnest money deposit is around 1% of the purchase price. If you are up against other buyers, consider putting 1.5% or 2% down to show that you are more serious about buying the home than the other buyers are.
GETTING PRE-APPROVED WON’T COST YOU ANYTHING AND WILL GIVE YOU THE COMPETITIVE EDGE.
3. Don’t nickel and dime the seller when the inspection report comes back. You could say that you won’t ask for the sellers to handle any repairs under $2,000. Just focus on the big items. The seller will think, “Great! My house is in good shape and now I won’t have 10 different contractors stomping through to fix each tiny problem.” Obviously, the seller would rather work with you than with someone who wants them to handle every issue on the inspection report.
These three strategies will position you to win in any multiple offer situation. If you have any other questions about buying a home or about the real estate market in general, give me a call or send me an email. I would be happy to help you!