The housing market is hotter than ever and multiple bids on a property are now the norm. Not to worry, there are many ways you can improve your chances of getting the house of your dreams. Here are some tips to follow when negotiating on a home with multiple offers.
All-cash offers are hard to beat, but if you can’t make an all-cash offer, offer above the asking price.
A seller loves to hear that the offer they receive is all-cash because cash is the fastest way to close a transaction. It is reported that all-cash offers improve your chances of winning the bidding war by 97%.
Another thing that will sweeten the deal is an offer above the asking price. If you are in a bidding war, have your real estate agent add an escalation clause that increases your offer to a predetermined limit. To let the seller know you are a serious buyer, provide a pre-approval letter with your offer.
Think about removing the financing contingency.
It is said that waiving the finance contingency in an offer increases your chances of the offer being accepted over others by 58%. This is telling the seller that if your financing falls through, you can still pay out of pocket. This risky move should be backed by an underwritten loan pre-approval from your lender.
Make an offer to buy the home as-is.
This is music to a seller’s ears. This means that there will be no inspection contingency. A buyer will not be able to back out of the contract because of something an inspector finds that needs to be repaired or demand the seller repair. Purchasing a home in its current condition will speed the sale of the home as well as save the seller any hassle or money for repairs.
Have your agent get the inside scoop. If there are multiple offers on the table, have your agent talk to the seller’s agent on what their expectations are. This can give you a leg up on the other buyer’s offers.
Do not give up just because another offer is accepted.
Offers fall through all the time so it is a good idea to have your Realtor inform you if a property goes back onto the market. A proactive agent can seal the deal on a second chance of getting your dream home.
In this competitive market, it is good to keep an open mind and do not get discouraged if your first offers are not accepted. Following these tips will help you obtain your dream home in this competitive market.
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