How to try to win a multiple offer situation with today's low inventory
Posted by Steve Harmer on Monday, March 14th, 2016 at 2:24pm.
The spring home-buying season is in full swing.
But there is just one problem: Low housing inventory in most price points of the market.
And no matter how much the demand is there and how much lenders are willing lend, it means little if there are no houses to buy.
As a result, the few houses left end up being fought over in multiple offers, leaving many borrowers without a house.
Here are a few tips that may help you win a multiple offer situation:
- Offer Full Price or More. Money is a major factor in a seller’s decision, but not the only one.
- Good sized deposit. Show the seller you are committed with a good sized deposit to stand by your “word” (purchase agreement) to buy the home.
- Cash is King. Go in with cash if possible to eliminate problems of appraisals and financing. Appraisals are a problem as prices are increasing. New regulations make it difficult for appraisers and banks to meet the market changes.
- Closing date should match seller's preferred date. Buyers agent should ask Seller's agent what date the seller would like close on.
- Allow seller a couple extra days possession after closing this gives them time to move out and lowers their stress.
- If buyer is doing an inspection, have buyer provide a statement that they will not nit-pick any items to re-negotiate price, but only structural or mechanical failures. Inspections were intended to be a way for the buyer to make sure they were not purchasing a major problem. Too often this is now being used as a way to re-negotiate the price with the seller. Remove this potential concern for the seller.
- If buyer is financing, have a well prepared Pre-Approval letter from the lender. Make sure it does not come across as a pre-qualification letter.