As a first-time home buyer, the process can seem a little daunting unless you have a top-notch real estate agent who understands and is experienced in all aspects of the endeavor. Let’s say you find that perfect home. It ticks off all (or at least most) of the must-haves you have on your want list. If it’s your perfect house, chances are it may be someone else’s too. Multiple offers on a house is a common occurrence when the real estate market is tight.
Competitive Markets Need Offers that Outshine the Rest
It goes without saying that the first thing that you must do is get pre-approved. If more than one interested party is pre-approved and others are not – it’s a no-brainer who will be first in line to sign on the dotted line and move into the new home. The home you wanted.
For your offer to be accepted in a tight market, there are things you can do to make your offer rise to the top of the pile.
Let’s Take a Closer Look
Correct forms. When it comes to making your offer look better than any others that the sellers might have, make sure you and your real estate agent have all of the correct forms. Your real estate agent will take care of this – but you have a responsibility that you have signed everything and you haven’t left something important on your desk at home or at your office.
Large earnest money. A significant amount of earnest money tells the seller that you are committed to the purchase. It shows them that you are serious about moving forward with buying the property.
Letter to the seller. You may not think this could sway a seller one way or another – but it can work to your benefit. Write a personal letter to the seller telling them why you want to buy their home. A personal touch can go a long way during the selling process. Add a family picture so the seller can see who will be taking over their home. It may be just enough to tip the scale for them to accept your offer.
Minimize contingencies. Sellers don’t like complications that will add to the stress of selling a home. When they have a choice between two or three similar offers – they will likely choose the one with fewer contingencies. That is not to say that you shouldn’t add contingencies if they are important, but try to keep in mind what is really needed if it could sink your deal.
Pre-approval letter. In a tight real estate market where there are multiple offers on a house – there is not much hope for an offer to be accepted without being pre-approved. You must show that you are pre-approved – and your loan officer and realtor will help you get this done before you even begin your home search. A strong pre-approval letter is another smart tool for your offer to be the one that is chosen.
Quick response time. No one wants to seal the deal more than the seller. When you discuss this with your real estate expert – don’t be shy about getting that offer in as soon as possible. If there are already other offers – more will be coming, so you want to get your offer in before any other offers arrive.
The Bottom Line
Working with a professional mortgage lender like Shamrock Financial will help make your offer as uncomplicated as possible. Sellers are happy when an offer is as easy as it can be. If you think you’re overwhelmed – think about the seller. Depending on the market, the seller may receive a dozen offers. You want your offer to outshine the rest.
Don’t let multiple offers on a house discourage you. You don’t know the details of those other offers. They may back out, or not have the down payment or earnest money they need to be the winning offer. Follow the advice of the experts – and your offer has a good chance to be signed, sealed and you’ll be moving into your new home before you know it.