Demand high – inventory low. This is still the problem we are seeing lately for well priced, good condition, good location homes. Inventory is creeping back up as it always does every spring/summer, but it’s still not very high…causing multiple offer situations on many homes currently listed. Most of my buyers have been in competition on their offers with other buyers – from price ranges of all levels.
As a buyer, there are a couple things to consider doing to set yourself apart from other buyers.
On regular homes (not bank owned homes where the seller is a unemotional robot), I often encourage my buyers to write a personal note to the seller. By explaining just exactly WHY you love the home, the seller may give you a preference over other offers because they see that you’ve really thought about the home/neighborhood/school/location/etc! Just recently on my listing in Folsom, my sellers teared up over the buyers’ personal note and fell in love with their letter. My sellers wanted to pass their parents’ home on to a wonderful family, and this letter won them over!
Something else you can do is to show how financially stable you are. If you have an awesome credit score, ask your lender to include it on your approval letter! If you have a solid amount of funds in your bank for your down payment, consider including proof of funds with your offer from the start! Ask your lender to call the listing agent on your behalf – to speak highly of you and your qualifications. All these little things add up to an impressive story.
Contractually speaking, if this is THE house of your dreams, go in strong and don’t mess around. Chances are that the next home of this size or floorplan will use this home as a comp, so don’t skimp on price and nickle and dime the seller from the start. The difference between $5K in mortgage is very little on your monthly payment, so consider going in at full price instead of trying to get a deal. If you lose out on a home because of wanting to get a discount, chances are you’ll lose out to other buyers who want it more. A caveat to that is to make sure the home will appraise – so work with your agent to see how the sales price ranks in comparison to the neighborhood!
Multiple offers can be challenging, but make sure you present yourself as a completely interested, committed, and financially stable buyer. Anything you can do up front will leave you feeling as you did everything you could to fight for that home!
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