The real estate market is very competitive in many cities around the country. This is because there are more buyers out looking for single-family homes than there are homes on the market. This shortage of housing inventory has resulted in many homes receiving multiple offers just days after going on the market. If you are currently searching for a home, you may well find yourself in a multiple offer situation. Here are some things you can do to make your offer stand out among the competition and increase the chance of your offer being accepted
Show that you are ready to buy
You should be pre-approved before you even go out to look at properties. This will ensure that you are only looking at homes that you can afford and when you find the perfect home, you are ready to make an offer. Make sure to include your pre-approval letter with the offer. This will show that you are ready and can afford the house.
Earnest money is a deposit you pay at the time of entering into a contract to purchase a home. It shows the seller that you are serious about purchasing the property. The minimum deposit amount is usually 1% of the offer price of the home. In a multiple offer situation, you should increase this deposit to 2% or 3% of the offer price. This will show the seller that you mean business. The earnest money deposit will go towards your closing costs or down payment.
Make your offer competitive. Know the market value of the property by having your agent complete a comparative market analysis. If the asking price is right in line with the market value, make your offer at asking price or a bit higher, if you can afford it. Also, try not to ask for concessions from the seller such as closing cost assistance. This will make your offer less attractive. You should also strive to reduce the number of contingencies. The seller is less likely to accept an offer that, for instance, is contingent upon you selling your home. However, you should not eliminate any contingencies that can protect you, such as the home inspection contingency.
One way to win over home sellers is to submit a personal letter with your offer. Most homeowners would love to know more about the family that may possibly move into the place they call home. Let them get to know you a little and let them know what you love about their single-family home. This really adds a nice personal touch to the process and will make your offer stand out.
Talk with a real estate professional about single-family homes in an area you like.