Multiple Home Purchase Offers And Tips In Getting Winning Offer
This Article Is About Multiple Home Purchase Offers And Tips In Getting Winning Offer
Today’s housing market is booming like never before in history. There are more homebuyers than an inventory of homes in the market. Home prices have skyrocketed in the past seven years. Despite the coronavirus pandemic, the demand for homes is exceeding supply. Low historic mortgage rates is escalating the demand of homes.
Cases Where Home Buyers Run Into Multiple Home Purchase Offers Situations:
- Some homebuyers in the hot buyers market with a low inventory of homes for sale are losing out over and over in multiple home purchase offers competitions
- Homebuyers can improve the chances of having an offer accepted
- This can be done by clearing up any issues that might cause a seller to look at your offer during multiple home purchase offers compared to one from another buyer
In this article, we will discuss and cover Multiple Home Purchase Offers And Tips In Getting Winning Offer.
Contingencies In Real Estate Purchase Contracts
If the home purchase offer is littered with contingencies that protect buyers, home sellers are more likely to see the contract as risky:
- This holds true especially if they are looking at other offers that contain fewer contingencies
A clean contract is free of contingencies, which can give buyers a competitive advantage. Especially if they are offering less than full price or are in competition with multiple home purchase offers from other home buyers.
Timing In Home Purchase
Timing is everything in real estate:
- Buyers often lose out on the opportunity to make an offer on a listing
- This is because they are traveling for business or vacation
- One partner may see the home of their dreams, but the other won’t be back in town to take a look for days or weeks
- Making an offer contingent on the absentee buyer’s approval of a property is risky from the seller’s standpoint
If the seller accepts the offer, he takes his home off the market not knowing if the absentee buyer will like the house enough to buy it.
How Sellers View Multiple Home Purchase Offers
It would be very difficult to get such an offer accepted if there are multiple offers from buyers who have all seen the property.
- The Internet can give a great introduction to a listing
It usually doesn’t include photos of items that might cause you to pass on the property, like a neighbor’s home that is in poor repair or a location close to a noisy freeway.
Purchase Offers Without Seeing The Property
Some buyers buy property without having seen it.
- To get an offer accepted, these offers usually have a generous price and close quickly
- The buyers may later find problems that they could have discovered had they seen the property before making an offer
- It’s better for both buyers and sellers if all potential buyers have seen the property before an offer is made
HOUSE HUNTING TIP: Try to anticipate if there is any condition of your home purchase that would cause the sellers to shy away from accepting or countering your offer. If such conditions exist, try to address them before making an offer.
- For example, let’s say parents are willing to give buyers a large amount of cash for a down payment to make an offer more competitive
- Make sure this will be acceptable to the lender
- Find out what verification the lender will require from parents
Sellers Concerns On Strong Buyer
Home Sellers are very much concerned about the home buyer’s financial strength in closing the home purchase transaction.
- Homebuyer real estate purchase contract offer should include a letter from the lender stating that they are pre-approved for the financing that they need
- The letter should stipulate that the lender has verified the cash you need for the down payment and closing costs
- If the verification of funds needed to close is not included in the pre-approval letter, make a copy of a bank or brokerage statement that verifies the amount you need
Blackout the account number and include a copy of this with the real estate purchase contract offer.
Real Estate Purchase Offers With No Contingencies
In some areas, buyers are making offers without any contingencies. That is as clean as it gets. However, there can be problems with contingency-free offers. Buyers can feel pressured into waiving an inspection contingency because they’re sure they can’t compete unless they do. The sellers could end up in a legal hassle with the buyers after closing if problems arise that weren’t disclosed to them.
THE CLOSING: Buyers should ask the sellers for permission to pre-inspecting the property before they make an offer without an inspection contingency.