Buying a home is an important decision. It’s a significant financial investment, so it’s something that shouldn’t be rushed or taken lightly. It may take several weeks or months to find the home of your dreams.
Some buyers run into situations where there are multiple offers for the same property. This is great for the sellers as it can increase the home’s value and price. However, it can make things a little more complicated for potential buyers because they have to compete with other people for the same home.
Buying a home in Florida that has multiple offers on it can sometimes be difficult. Being persistent and having a good plan of action can help persuade the seller to hear what you have to say.
Here are a few things that you can do to make your offer more appealing:
1. Get pre-approved for a mortgage loan as soon as possible.
The very first thing that you should do once you’ve decided to buy a home is to get pre-approved for a mortgage loan. This will give you a leg up on other interested parties who don’t have their financing in order yet.
To get pre-approved, you’ll need to sit down with a lending officer. Explain your intentions. They will review your employment and credit history and then determine whether or not they can offer you a loan.
If you are approved, they will issue a pre-approval letter. This letter will state the amount and terms of a home loan that the lender is willing to provide.
2. Don’t ask for closing costs.
Some home buyers will ask for the seller to pay for certain closing costs. Repairs, renovations, attorney or settlement fees and loan payoff fees are some of the components that typically make up seller closing costs. These costs are often around two to five percent of the total sale price.
If you really want the property in question, you don’t have to ask for closing costs. You could offer to pay these closing costs yourself. This will let the seller know that you’re serious about your offer and may make you look more favorable in their eyes.
3. Make an offer that’s at list price or higher where possible.
While you’re researching properties in areas where you’d like to live, take a look at the sale prices that are being advertised.
See how they match up against the amount of your loan pre-approval and how much you can actually afford to pay. You may want to make an offer on a particular property that’s either at or above the seller’s list price.
This is only something that should be done if you can absolutely afford to. There’s no sense in getting yourself in more debt that you can’t payback. Making a larger offer could catapult you to the front of the seller’s list of parties that they’re willing to talk to and negotiate with.
4. Don’t ask for a home warranty.
A home warranty is a policy that covers the replacement and repairs of appliances and other systems in a home. These events are usually expected over time.
A home warranty is different from a home insurance policy in that home insurance policies cover events such as floods, inclement weather and other unexpected occurrences that could cause damage to a home.
You may decide not to ask for a home warranty when talking to a home seller. You may decide to pay for a home warranty yourself. This ultimately saves the seller money and makes your offer more attractive.
5. Offer additional earnest money.
Earnest money is an amount of money that homebuyers put down toward the purchase of the property. It’s also referred to as good faith money. Earnest money shows the seller that you’re committed to purchasing their home.
Earnest money is part of a home purchase. If the transaction is mutually canceled, that earnest money is returned to the buyer. Offering more earnest money than expected signifies your intent to purchase a particular property.
Although there’s no guarantee that your offer will be accepted or that the transaction will be successfully completed, it is another item that may draw more interest to your offer than similar offers from other interested parties.
6. Propose a quicker closing.
Another way to impress a home seller is to suggest closing on the property sooner than expected. Most closings can take anywhere from 30 to 45 days or more from the time your loan is initially processed.
This may be an especially intriguing offer if you’re dealing with a seller that’s ready to move on as soon as possible.
It may not always be possible to close quickly on a home. However, if this option is available, it’s something that you should definitely consider.
7. Have a strong offer.
The offer that you make on a home should be solid. There’s no reason to lowball or take things conservatively. This is especially true when dealing with a home owner that has more than one offer made on their property.
Your offer should be your best offer. You can make concessions if necessary. It should be something that’s carefully thought out. It should express your intent and give the seller every reason to work with you instead of anyone else.
8. Allow the sellers plenty of time to move.
Sometimes sellers may need a little extra time to move out of the property that they’re selling. They may be relocating across town or to another area entirely. Sellers might also encounter roadblocks from time to time when attempting to purchase another home.
To make things easier, you can let the sellers take more time to move out of their home. It’s a noble gesture that can express your understanding and flexibility. It’s an option that should be explored if you’re in no hurry to move once the transaction has been completed.
These are just some things that you can do when you’re interested in buying a home that has several offers. Your approach will depend greatly on the individual situation. Circumstances may dictate certain actions and behaviors, so be ready to respond accordingly.
No matter what happens, be sure to communicate and have an open mind. If the seller picks your offer, that’s great! You’ve overcome a major obstacle and are one step closer to your new home. If not, don’t take things personally and be ready to move on. The willingness to make concessions and accommodate the seller in different ways could help you turn your dream of owning the house that you’ve always wanted into a reality.
Give Celia, Ann, Laura or Terri a call today to discuss your Real Estate needs.