Buyers, be ready to make a decision on a property quickly and act right away… competition for homes for sale is getting fierce and multiple offers after only a few days on the market is becoming more and more common. It's starting to remind me of the days when getting a deal was getting a property at list price before it went into multiple offers… and the supply of homes for sale relative to buyers is even lower now than it was then, 10 years ago!
I had two buyers doing the happy dance this weekend when they found a property they really loved…
- One was an adorable 2-bedroom house in south Minneapolis… on the market only two days with 3-4 offers
- The other was a city condo at a higher pricetag… not even listed and there were two buyers competing
What this means for you as a buyer is it is essential that you are prepared to make a decision and write an offer quickly when you find a home you love!
- Have your financing ready as buyers in this market won't consider offers that don't have pre-approved financing (or verficiation of funds if it is a cash offer)… make sure you are working with a reputable lender, preferably local… if multiple offers are similar it can be the lender that makes the difference in who they choose
- Have cash ready for your earnest money deposit and inspection… your earnest money check will be cashed within 3 days after coming to an agreement
- Be emotionally prepared to make a decision quickly… ask yourself, if you wait to think about it and the property is gone, how will you feel
- Don't get so caught up in the emotion of the moment that you make a decision you will regret later… make YOUR best offer, one that is high enough that you won't regret not offering more if yours isn't the winning bid… and low enough that you won't feel you overpaid and/or will have a hard time meeting your financial obligations if yours is the offer they choose… if you miss out on this one there will be another one for you
Most buyers know when they have found a home they love (and your Realtor will also know if he or she is paying attention). You might feel it in your stomach, you might get hot and start to perspire, your face might light up like a lightbulb… everyone's happy dance is a little different, but all indicate it is time to consider writing an offer!