How to deal with multiple offers
January 27th, 2015
| Home Buying Tips
You found the home of your dreams. But you’re not the only one who wants to buy it. What’s the best way to make an offer on a home that other buyers are vying for? Here are some ways to put your best foot forward:
Start off with your best offer. This isn’t the time to start with a low offer and wait for the seller to make a counteroffer before you offer more. If you have competition, you’ll want to consider making your best offer right off the bat. That said, don’t let a multiple offer situation push you into offering more than you’re comfortable paying.
Attach your preapproval. Make sure you’re pre-approved for a home loan, not just prequalified. Attach your preapproval letter to your offer. Sellers don’t always accept the highest offer. In some cases they will accept a lower offer with stronger financing, is from a buyer paying cash or from one making more of a down payment. Sellers are swayed by buyers who put down a large deposit in the form of earnest money.
Consider attaching a personal note. You could include a short note along with your offer explaining why you love the property. What do you love about the home? Do you know any of the neighbors? Did you grow up in the area? Keep it short and sweet. (And don’t write a letter explaining how you plan to gut the place or tear it apart in a major renovation.) The jury is still out whether writing a ‘love letter’ does any good, but it probably doesn’t hurt.
Don’t go crazy. In multiple offer situations, it’s easy to get caught up in the competition and do whatever it takes to win. To stand out, some buyers will even elect to not make a professional home inspection a contingency of their offer. Waiving an inspection can be extremely risky.
Relax. There are so many parts of a multiple offer situation you have no control over. You just have to accept the fact it’s a lot like a game of chance. Make your best offer and wait to hear the outcome. Even in a hot housing market, there are always other homes. We’ll help you find the right one!