Find a house you like? What if three other buyers are eyeing and planning to make a move on it, too? What would you do if you find yourself in a multi-offer situation?
Multiple offers can happen, especially in seller’s markets. To make sure your offer is heard and chosen, here are a couple of things you can do.
- Make a large earnest money deposit
Grab the seller’s attention and emphasize your seriousness in buying the home by giving a significant earnest money deposit. On normal situations, we typically advise giving at least one or two percent of the asking price, but in the case of multiple offers, feel free to go above and beyond.Aside from standing out from the competition, you’re doing yourself a favor. As the earnest money deposit forms a part of your payment, you’ll be shelling out less money as the sale pushes through. It can be large enough to cover most, if not all, of the closing costs, for instance.
- Get pre-underwritten for a loan
Go one step further in your loan application process. Most buyers nowadays get loan pre-approval. Getting pre-underwritten for one will surely make the seller pay attention to your offer.As the pre-underwriting process already involves vetting your finances and the lender agreeing to give you a mortgage, you’re basically good to go. Your loan is guaranteed. All you need to do is to complete the rest of the process.
Being pre-underwritten for a loan also allows you to remove the financing contingency from the purchase agreement. Your offer will be almost as good as a cash offer. Read more about pre-underwriting here.
- Remove, shorten, or waive contract contingencies
Doing so will shorten the process and allow you to finish closing on the home fast.As mentioned earlier, being pre-underwritten allows you to remove the financing contingency. Home inspections are a must, but you can shorten this clause or waive some aspects, such as lead paint inspection. Before you go and remove or shorten anything, sit down with your agent to identify contingency clauses that are absolutely necessary.
- Offer to shoulder some of the costs
If you’re in a multiple-offer situation in a buyer’s market, rethink your strategy. In such cases, you might just be facing off with one or two other buyers.One way to make your offer better is to offer to pay for some of the closing costs. Find out which of these expenses are usually taken care of by the seller and offer to pay one or two of these fees.
- Write a sincere letter
In most cases, sellers have an emotional attachment to the homes they’re selling. Appeal to their emotions by penning a genuine and heartfelt letter about why you’re so keen to purchase the property. Sellers who are attached to their property want to pass it on to the right buyer, so express why you’re the one in the letter.
We can help you make the best offer
Found the one among the many homes for sale in Turlock, CA? We’ll help you craft an offer no seller can resist. Contact us today at 209.975.7653 or info(at)soldavi(dotted)com to get started.