How to Compete in a Multiple Offer Situation
You may think it will never happen you. Then you find yourself making an offer on the home you want, along with other buyers offering on the same house. That is why it is important to get knowledgeable about what you can do to compete in a multiple offer situation.
To ensure you are prepared and put your best position forward, here are some tips which might help:
Obtain Your Prequalification Letter
A prequalification letter is a must have in today’s real estate market. It will be difficult to compete without it. Make sure to contact your lender to get prequalified prior to shopping for a home.
Build a Full and Complete Loan File
Work with your lender to build a complete loan file. This ensures you have been prequalified and your loan file is ready to process as soon as your offer is accepted, leaving the seller confident your financing is secure. This also helps you by understanding your loan options before & while shopping for your home.
Be Prepared to Move Quickly
When you find the right home, time is of the essence and you might not realize it immediately. Rely on your real estate agent to guide you. They understand the real estate market best and how best to proceed when the clock is ticking.
Be Prepared to Compromise
Make a list! Write down must haves and disqualifiers of a home. Include items on which you are willing to compromise – and stick to it. See past the cosmetics of a home and evaluate the bones of the house. It is important to be realistic and trust your agent’s judgement.
Allow your agent to be your agent. Sounds simple right? It can be difficult if you see things one way and your agent is telling you another. Try and remember they are the experts in the field, and you can rely on their experience to guide you. When it comes time for a home inspection, ask your agent about additional inspections which might be beneficial. Request only reasonable or critical repairs. Be flexible on viewing times too; it may give you advantage.
Be Willing to Offer Over List Price
You may need to offer over list price to compete. If this is your situation, consider alternatives in other areas of your financing and be willing to explore them with your lender. For example, if you were planning to pay for your down payment on your own, it might benefit you to look at other alternatives such as 401k sources or gift funds.
Ask Your Lender to Participate in the Offer Process
Lenders can help strengthen your offer and give confidence to the seller. Real estate agents may have a preferred approach so be sure to ask your agent how they think your lender can help with the offer.
With interest rates so low, your buying power increases. Couple that with experienced real estate agents on your side like those of us at Arizona Home Group, you’ll be in a position of strength so don’t wait too long to make the offer! Go get the home of your dreams.