Many of my clients that are buying homes are finding themselves in multiple offer situations. Because of the inventory, low home prices and low interest rates, we are seeing many homes with multiple offers on them. That will drive up the sales price and can make it more frustrating for home buyers!
If you know you are going to be in multiple offers, here are a few tips to make your offer as strong as possible:
- Be prepared to provide a strong offer. Get preapproved early, so you are ready when you see the home you want to buy. Make sure you have your approval letter, that way the seller knows you are ready to buy and your loan will close.
- Know your financial goals. Make sure you know where you want a mortgage payment and what your limits are. When you get into multiple offers, emotions can take over and you may end up spending more than you want to – or can afford to. Remember the home still has to appraise for the sales price.
- Work with a reputable lender. Many listing agents will contact the mortgage loan officer to verify the approval letter and may ask additional questions. Sometimes this contact may be enough to sway a seller to you over another similar offer.
- Consider your closing time. If the property is vacant, a quicker close may make the difference in getting the sale. If the seller needs to find a home, being flexible can help you get the home.
- Make a non-contingent offer. If you have a home to sell and have the ability, you may want to consider making an offer non-contingent on the sale of your home. This will make your offer stronger but you also need to know that you will have to buy even if your current home has not sold. If you can do that and are approved to buy that way, it can definitely make your offer stronger.
The more prepared you are as a buyer, the better off you will be. Make sure you have talked with your lender and know that you are approved. If your loan officer needs anything from you for your approval, make sure you get it to them. It can be frustrating to lose a home when you are in multiple offers, but remember there will be another home available and maybe the next one will be the one you get!!
Leslie Vanderwerf, NMLS ID#335509, Summit Mortgage - Email – Website
