Making an Offer in a Competitive Market
Imagine finding a home you love, making an offer, and then finding out there are other competing offers on the table. Ouch. If you’re looking for a property in a competitive market, it is likely that there will be multiple offers. Even just one can create the risk that you’ll lose the home. So how do you make sure your offer is enticing enough to win over the seller? Here are some ideas:
• Find their motivations. To seal the deal, you have to know the seller’s motivations. We’re all motivated by something, and seeing things from the seller’s point of view can help you write a killer offer. Usually it’s one of three things:
- The bottom line (aka “money”)
- A rush to move/don’t want to drag the selling process out (terms)
- Emotional attachment
• Don’t make a low-ball offer. If you do, it might be dismissed and you probably won’t get another chance to bid — especially if the other competing offers are near the listing price.
• Make sure your finances are in order. Have a pre-arranged mortgage and include that with your offer. This reassures the seller there won’t be any money issues. (Most lenders will provide you with a pre-arranged mortgage certificate for this purpose.)
• Be prepared to move fast. When houses are selling fast, you've got to be faster than rival buyers. Do your research ahead of time to hone in on exactly what you're looking for. If you're financially ready to buy, waiting around won't do you much good. Not only do you risk prices going higher, but interest rates as well.
• Give it your best shot. Remember that sometimes you only get one chance. You need to go in with the highest price you are willing to pay and be happy whether you win or lose. This is tricky and requires a savvy knowledge of the current market, your REALTOR® can surely help you with that.
In a competitive situation, working with a REALTOR® who is an expert on the local market — and a skilled negotiator — is crucial. Looking for a REALTOR® like that? Call today.
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