When you have found the home of your dreams, I am sure you want to do whatever it takes to have your offer accepted so you can enjoy what is to come. What about when there are multiple offers? What can you do to increase your chances of securing the home? Here are some valuable tips that will help you land that house you have been dreaming of.
Bidding on a Home with Multiple Offers
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.
Get pre-approved for a loan
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.
Have 20% down
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.
Have your proof of funds letter
Once you have secured your loan, contact your lender for a proof of funds letter that you can give to your realtor. Many times this comes in handy, as the sellers want to know what bids are backed by approved loans when making their decision for sale price.
Give 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 contingencies brief
It is best not to have any contingencies when there are multiple offers on the table, but if you do, keep them brief. A seller will shy away from an offer that has a lot of contingencies along with it.
Work with the seller’s timetable
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 sellers 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.
If you take these tips into consideration, you are well on your way to securing the home of your dreams. Discuss any questions you have with your realtor, as he or she may be able to assist you as you make your bid and do your part to appeal to the sellers.