In the current market, homes are selling quickly and close to their full asking price. This means, as a buyer, you need to study up on everything you can do to walk away a winner during the offer process.
Because the inventory is so low for buyers, if there is a listing priced correctly in a good location, be prepared for many buyers to jump at the chance. This means that you could find yourself in a Multi-Offer situation.
Check out the 6 Best Tactics to guarantee you a win in the fight for the home of your dreams.
#1
Keep in Mind the Net to the Seller
When you make an offer, the seller will not just look at the Purchase Price. They will be looking at their net, or what is their "pocketed" price. They want to know the final number that will be written on their check at closing. This means that they will be looking at all of the funds you have asked for in your Purchase Agreement. They will be looking at the total amount of closing costs you have requested and home warranties. This will lessen their "pocketed" price. Keep this in mind when asking for too much. If the seller sees another offer with a lesser Purchase Price, they may choose it because the buyer is not asking for much. Therefore, their net is greater.
#2
Contingencies
This is also a factor that may cause a seller to pick one offer over the other. If you have a home to sell first, this could cause an increased transaction period. This postpones closing, therefore postponing their profit.
#3
Type of Financing
Certain types of financing can be more desirable for a seller. There are types of mortgage loans that require longer closing times or have specific procedures you must follow, which will, in turn, extend the closing time. Also, keep in mind...CASH speaks volumes!
#4
Inspections
As usual, we ALWAYS recommend for a buyer to have a home inspected. However, the types of inspections being completed and the time frames they are to be completed may be a factor taken into account by the seller as a pro or con when choosing to accept one offer over the other in a multi-offer situation.
#5
Earnest Money
When purchasing a home, as part of your Purchase Agreement, the buyer will specify a value of Earnest Money they will be offering as part of the transaction. This can also be referred to as a "Good Faith Deposit". This value will be a specified amount of money that the seller would keep should the transaction fall through.
#6
Closing & Possession
Most sellers will choose the offer that has the quickest closing and possession terms that work best with their plans. They are all about that final total and will typically choose the offer that will get them that check in the least amount of time.
Just keep all of these factors in mind when writing an offer on that "just perfect" property. As usual, your real estate agent should walk you through this process step by step and guide you in the best direction to come out as a winning homeowner!
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