Buying a home in a seller’s market can be cutthroat, and that’s just a mild way of putting it. Demand for homes is at an all-time high, and there aren’t even enough homes for sale. To make things worse, home sellers deal with a multiple offer situation from several interested buyers.
Sellers will automatically have the upper hand; they keep their prices high and wait for the most profitable offers. As a potential buyer in this scenario, you need to do more than the usual bidding and seek a better approach.
Make sure that you are sending over a pre-approval and not a pre-qualification.
Pre-qualification is when you have only covered the basic formalities with your mortgage lender. Maybe you went online and filled out a loan application, or you had a conversation with a lender.
Pre-approval is when the lender has reviewed all your documents — credit score, employment history, bank statements, etc. The lender has also pre-approved you for the loan. Pre-approval makes a much stronger statement of intent to the seller.
“…what the seller really wants to know is if they accept your offer, they will have the comfort and peace of mind knowing that the loan is going to close. So what you should do is make sure that you’re pre approved.”
Make sure that you’re writing a strong creative offer.
Everyone wants more money. In a real estate seller’s market, even more so. The simple reality is the higher you go, the more likely you are to get that property. So in these situations, it pretty much comes down to one thing — how much does that property mean to you?
The common tactic is to agree to pay over the appraised value.
“..let’s say the buyer agrees to pay $5,000, over the appraised value. What that means is that the seller is guaranteed an extra $5,000 on their property …that is really competitive and a lot of sellers really like that.”
Make sure that you are working with a professional, experienced realtor.
A multiple-offer situation can often be frustrating. There are just so many things to consider. Additionally, the fact that the seller has the upper hand means they have more than enough reasons to justify disqualifying potential buyers.
Sellers tend to have a lot of questions. For instance, what does the seller need on the closing day? Maybe the seller has not found a new home yet. You need a professional realtor by your side to read the market and provide expert guidance towards making a compelling offer.
“That one question that your realtor asked could be the one thing that helps you win that multiple offer situation. You want to make sure that you are working with someone who has experience with multiple offer situations.”
The Bottom Line
Following what everyone else does won’t get you very far in a multiple-offer situation. It’s all about playing smart to get that unfair advantage. If you’re currently making offers, The Nickley Group can help you land that dream property. We’ve handled our fair share of multiple offer situations with resounding success.
Visit us now at 1013 E. Colonial Dr. Orlando, FL 32803 or call 407.906.2456.