Multiple Offers - Buyer's Perspective
Multiple offers are the things dreams are made of for sellers, but a nightmare for the buyer. Today I wanted to provide some tips for buyers who end up in a multiple offer situation.
1. Don’t wait: If you’ve found the one, don’t wait to offer on it. Every day that you wait, other buyers are looking at the property and the more people that see it, the more likely you are to end up in multiple offers
2. Be Ready: Have your mortgage pre approval, once you have your mortgage pre approval you’ll know what you can afford and you’ll be confident when you put in an offer. If you have a questionable pre approval it is advised to not get into a multiple offer situation
3. Have your Professionals Ready: If you do in fact end up offering on a multiple offer situation, you may be asked to tighten up your time frame to complete home inspections and final mortgage approvals and even lawyer tasks. It is best to know who you will be using for these services and to make sure that you have them ready when you are.
4. Let you agent know your position: Having open and honest communication with your real estate agent is best and you need to let them know how you feel about multiple offers. If you are willing to compete for the perfect house or if you are willing to walk away and keep looking. If your agent doesn’t know your true feelings for the house or your motivation, they won’t be able to properly assist. Remember, with a signed buyer’s commitment, your real estate agent is working for you and you are free to tell them how much you love or hate a house and don’t be afraid to hide your true feelings, chances are your agent doesn’t own that house and won’t be offended.
5. Plan a Strategy: I can’t give up all my multiple offer strategy tips here, but those of you who have worked with me in multiple offers are aware of what can be done. One tip that I will provide to everyone is don’t compromise on the big items, if your agent is asking you to remove your conditions of financing (if your financing is unsure) or to remove a home inspection, those aren’t items you should be compromising on. Maybe not asking for that wall mounted TV or appliances you know the owners want to keep are good items to remove from the offer, but not items that can affect your ability to purchase the house, the added stress isn’t worth it.
6. Remember it’s your Best Shot: Make sure when you are choosing what price you are going to offer in a multiple offer situation that what you are offering is your one and only chance. This price is the price you have to live with, make sure it’s a number you can afford, a number that doesn’t make you second guess how much you spent on the house and a number that isn’t just below the other offer and when you found out you lost the house over $1000 you don’t want to kick yourself over and over again.
7. Feel Good about your decision: Remember that if you don’t get the house you wanted there is always going to be another that you love even more. If you did get the house in the multiple offer, Congratulations don’t worry if you paid a little more than you wanted, the house was the one and you’ll be there long enough to make a return on your investment.
Multiple offers can be exciting and nerve racking at the same time, make sure you are prepared if the situation arises and remember if you work with a good agent and the home is meant to be yours, it will be!