Five Tips For Winning In Multiple Offers
Five Tips For Winning in Multiple Offers. You’ve been searching for a home for weeks, made several offers and each time you’ve been caught in a multiple offer situation where you were not the winning bidder. This is an all too common scenario in the North Atlanta market, and it can be frustrating and disheartening. Since the market broke loose in 2012 there has been intense competition among buyers to get the best homes across the entire metro area. Buyers have come out in full force, and besides competing with one another to get the great home, they are competing with large institutional investors who have saturated the market with cash offers. Cash is king, and buyers who must finance find themselves always being the bridesmaid, never the bride. What can a buyer who is financing do to finally get a good home?
Here are five ways to be the winning bidder in a multiple offer situation:
1. Get Pre-Approved For a Mortgage. There is a difference between getting pre-qualified and pre-approved. Pre-qualification means the lender has asked some questions about your financial situation, run your credit report and stated that if everything you’ve said checks out, and if you can provide the documentation they require, you are qualified to get a loan. Pre-approval means that not only has the lender run your credit report, they have collected all the required documentation from you and processed an actual loan application through their underwriting department. This puts you in a much stronger position than a buyer who is only pre-qualified.
2. Make yourself available to get out and look at new listings as quickly as possible after they come on the market. The old cliché, “the early bird gets the worm” couldn’t be more true. The best homes are sometimes scooped up the same day they come on the market.
3. Make your offer as clean as possible. Don’t ask the seller to throw in things like cosmetic improvements, personal property or their furniture. Limit the contingencies you ask for to those that are necessary, like appraisal and loan approval.
4. Offer a higher amount of earnest money than is customary. This will tell the seller you are serious about purchasing.
5. Make an as is offer, stating that you will not ask the seller to make repairs, and offer a very short due diligence period. Many buyers will ask for a 14 day due diligence period. You can get an inspection done and review the results within 3 days. Sellers have to hold their homes off the market during the due diligence period. The shorter your due diligence period is, the more attractive you are to the seller.
I’ve helped many buyers successfully navigate through today’s competitive market. The bottom line? Have realistic expectations about the market conditions. Be persistent, and be prepared to make a few offers before you are able to get a home under contract. You WILL get there!