Facing the Competition: Get an Edge in a Multiple-Bid Situation
Now that we’re into the heart of the summer real estate season, you may have competition from other potential buyers—and you may be faced with a multiple-bid situation for your dream home.
However, with the right preparation and a few savvy moves, you can get an advantage over other buyers and close the deal. Here’s how:
1. Get your finances in line ahead of time. It can’t be emphasized enough: Make sure your finances are in order before you even start looking at homes. To get an edge, you’ll need to get pre-approved for a loan. With a pre-approval, the seller will see that you’re ready to buy and that you have the backing of a lender.
2. Consider what is important to the seller. Is the seller looking for a quick sale? A high selling price? A contingency-free offer? If you can find out what the seller wants, you’ll be able to make a more attractive offer. Ask your real estate agent to check with the seller’s agent to see what aspects of the home sale are important to the seller.
3. Thoroughly research market conditions. Knowing local market conditions can help you make a strong offer. Also, your agent can run an analysis of similar home sales in the area—known as “comps"—and compare these to the house you’re considering buying. By looking at comps, you’ll be able to get a decent idea of what your initial offer should be.
4. Make a solid—and fair—offer. In a multiple-bid situation, a low-ball offer can backfire on you. The seller may think that you’re not serious about buying the home and may not consider any other higher offers that you make. Before making your first offer, sit down with your agent and hash out a good offer, keeping in mind the possibility of competition from other buyers.
5. Let the seller know how much you love the home. Another key tactic is to let the seller know your level of interest in the home. You can do this through a well-worded cover letter with your first offer or even a personal letter to the seller. However, don’t try this strategy on your own. You’ll need to work with your agent because this tactic can be tricky and you’ll want it done right.
6. Have a contingency plan. Your first offer may not be accepted, but that doesn’t mean that you’re out of the running to buy the home. Before making that initial offer, you and your agent will need to come up with a good backup plan for second and third offers, if your first offer is rejected.
For more strategies on how to get an edge over other potential buyers, talk to your real estate agent.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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