MULTI-BID SITUATIONS
In a seller’s market, you’ll probably have competition for the house you wish to buy. Sellers might be considering several offers at the same time. They will make their decision based on the best offer. They may also choose to work with one potential buyer and only send any counter-offers to them. The best way to protect yourself from multiple offers is to make your offer better than the others. Receiving a pre-approval for the mortgage will be a good start to becoming a seller’s choice. Also, let the seller know the financial options you have – for example, if you plan to put down 20%. Some mortgage conditions and funding programs are more attractive and may influence the seller’s decision. Bid close to, at or above listing price. There isn’t much sense in offering significantly less in a seller’s market. The fewer contingencies clauses you have there, the more attractive your offer seems to the seller. Like not having to sell another property to buy or waiving an inspection. (Personally, I don't suggest foregoing a home inspection because you need to know the condition of the home. However, there are good tactics to use to ease that contingency and still protect the buyer.) Showing your intentions by making a large good faith deposit or earnest money and a down payment can help convince the owner of your commitment. In our system, we can send earnest money electronically which means it gets to the seller immediately and gives them confidence in your offer). Waiting on feedback for offers can be a stressful period in the home-buying process. Keep in mind that the owner is interested
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