HOW TO WIN BIDDING ON A HOME WITH MULTIPLE OFFERS
What can you do to increase your chances of securing the home of your dreams in a multiple offer scenerio? Here are a few tips that may help you succeed in winning your new home:
HAVE 20% DOWN PAYMENT
Do your best to save 20% of the cost of the home and if you can put down more than that, go ahead. Having a large down payment is not only wise, but it also appeals to the sellers.
GET PRE-APPROVED FOR YOUR MORTGAGE
Be sure that you have been pre-approved for the loan amount of your offer. If you do not, it could hold up your bid and the sellers may go with another bid.
USE CASH IF YOU CAN
If you have the cash, make a cash offer because sellers are more apt to sell to cash buyers than those who are working with lenders. Make sure the cash offer would match the appraisal value of a home, or your lender will make you pay the difference in cash to make the deal.
MAKE YOUR BEST OFFER FIRST
When there are multiple offers, it is best not to go in low in the hopes that the sellers will counteroffer. Chances are they won’t counteroffer at all and will simply go with the highest bidder. If you are particularly fond of the home, put your best offer on the counter even if it is above asking price.
KEEP CONDITIONS/CONTINGINCIES BRIEF
It is best not to have any contingencies when there are multiple offers on the table, but if you do, keep them brief. Sellers may shy away from an offer that has a lot of contingencies along with it.
WORK WITH THE SELLER’S TIMEFRAME
Find out what the seller’s timetable looks like and keep it in mind when making the offer. If they want to close within a certain amount of time, be sure that you let your realtor know that you can make that happen.
WRITE THE SELLER’S A LETTER
Some people have taken the time to write the seller’s a letter stating why they want to purchase the home in the hopes that they will make a connection and win some favor. Perhaps it is close to the school you want your children to go to or your elderly parents live in the same neighborhood. It wouldn’t hurt to write a professional and warm letter to try to go along with your best offer.
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