Depending on the market you are in, you may be competing with other buyers on the home that you want. This usually happens in a seller's market when there are not a lot of homes for sale. During this time, usually the "dud" homes that have been on the market awhile will still sit and need price reductions. On the contrary, the new listing that hits the market is "fresh meat" for all the qualified buyers who are home shopping. When it is a busy buyer market, there are more buyers than sellers. What do you think happens to the 9 of the 10 buyers who lost their bid in a multiple offer situation and they find another new home on the market in their potential area? You guessed it! It is another multiple offer situation! Only one buyer can get their offer accepted.
If you find yourself buying during this time, you want to help yourself become the best buyer out there that you can be. Here are 15 tips to make you a more attractive buyer:
- Offer Cash-Can you borrow money from somewhere?
- Have your loan fully underwritten by your lender. Make sure that your buyer's agent knows it and have it in your pre-approval letter as well.
- Work with a local lender.
- Offer to waive your private home inspection. Only do this if you feel very comfortable handling any home issues after you purchase it. This is usually a contingency that will protect the buyer after inspecting the home. You may be taking an expensive risk.
- Offer to pay for some of the seller's closing costs. Typical closing costs that may be an option to pay for could be seller title work, seller transfer tax or waiving the tax prorations. Be sure that your lender will allow for these added costs in your loan approval.
- Submit a "We Love Your Home Letter" describing the material/factual things that you love about their home while avoiding the violation of any Fair Housing Discrimination Laws. Some seller agents may not submit these to the seller per their listing agreements.
- If the seller needs occupancy time, offer low or free occupancy rates.
- Submit a high Earnest Money Deposit.
- Offer a forfeiture provision on your Earnest Money Deposit, regardless of the reason, if you withdraw your offer.
- Submit a price acceleration clause with your offer. For example, offer to increase your offer $1,000 over highest offer up to a certain offer amount. Be prepared to show proof of funds for the additional amount.
- Offer to pay a certain dollar amount over appraised value, and up to a certain dollar amount, if home does not appraise for offer price. Be prepared to show proof of funds for the additional amount.
- Reiterate your financial strength; high Earnest Money Deposit, High Down Payment, Fully Underwritten File.
- See if lender will Waive Appraisal.
- Have Lender contact the listing agent directly to assure their confidence in the loan approval before the decision is made.
- Work with a well-know Real Estate Agent. Although the offer decision is ultimately made by the seller, listing agents are more willing to work with an agent that they know and can get the job done.
Hope this helps with your home buying plans and gets you one step ahead! If you are looking for a Realtor in Southeastern Michigan, please reach out. I am willing to answer any of your questions.
Kelly Dix, Real Estate One, firstname.lastname@example.org 586-899-6666 www.kellydixrealtor.com