The road is not easy for home buyers. As a person who is trying to settle in Sandy Springs, GA, you should know that the market right now is highly competitive. Houses are being sold left and right, and sellers are making a pretty penny.
So, if you are planning to buy a house, there’s one thing you should know – your bid will not be the only one. You might think that you have finally found the house of your dreams but it can be taken away the next minute. How? Well… You forgot that there might be multiple offers and the seller will choose the one that promises a high profit. Following are some strategies that will help you navigate the hot waters of how to compete in multiple offers. However, you should remember that these strategies do not give a 100% guarantee that you will win but it sure does bring you in the front line of the competition.
Multiple Offer Strategies
1. Get the Pre-Approval Letter Right Away
A pre-approval letter is a testament that you are a serious buyer. Sellers love noting more than an instant deal. It’s possible that the next house you look at has had many visitors but only two or three offers. Once you have decided on an amount, get your mortgage approval from a bank or a local lender. This way, if your heart gets stuck on a house on you next search, you can write an offer on the spot.
2. Pay High Earnest Money
Earnest money is quite an effective tool in attracting the attention of the seller. Earnest money is the amount that a buyer pays when their offer is accepted. Usually this amount is 2% of the sale price. The seller keeps this amount if for some reason you back out of the deal. The trick to roping the seller is to increase this earnest money. Somewhere between 5% – 10% is a good amount for earnest money.
3. Go Easy on the Seller before the Closing
When you have got the deal, it’s time to go over a few things with the seller such as repairs, previous bills, maintenance, etc. There is still a possibility that the seller might rescind his offer. Therefore, do not be too harsh on the repairs because you are the one who made an offer after an inspection. Focus on the bigger repairs and explain to the seller why he needs to do them. Be on time for every meeting and do not be too critical or demanding.
4. Pay Over the List Price
Just like buying strategies, sellers have a few tricks up their sleeves too. One of the things that most sellers are advised to do is to set the price of the house below market value. This gives the house an edge over other houses and attracts more buyers. So, paying more than the list price will be in your favor. This might not be possible if you are under a tight budget, but if you really want your dream house, you need to go a little high.
A great way to present your case on why you want to buy the house is to send a short introduction letter detailing out the beauty of the house. The seller will surely notice your emotional attachment and might call you back. You don’t need a realtor working on your behalf to close the deal. Getting personal and showing interest will convince the seller that you are a serious buyer.