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A Homebuyer's Guide to Multiple Offers
By: Linda Mossman Real Estate
Rather than getting pre-qualified as a homebuyer, go the extra step and get pre-approved. Pre-qualification can be declined more easily than a pre-approval, as they don't require the same extensive research. To pre-approve a homebuyer, the lender pulls a data facts credit report, collects pay stubs, bank statements and W-2 forms, and performs a Verification of Employment (VOE). Being pre-approved can give you a significant leg up on other potential buyers who do not have pre-approval.
Work with the Seller
Going out of your way to understand the seller's plans can go a long way in a multiple offer situation. Your real estate agent should already know the intent of the seller from either the seller's real estate agent or the seller themselves. This allows you to restructure your purchase offer to be more appealing to the seller. If the seller wants a quick closing or needs more time, tailor your offer to meet their specific needs. As the seller evaluates each offer, your offer may stand a better chance.
Consider a Large Down Payment
If you are able to save a little more for a down payment, you may be able to push the seller toward your offer. A larger down payment can speed the process along and may increase the probability of a mortgage commitment being issued. This can also show the seller that you have been dedicated to saving a large sum of money to put toward a home, which proves that you are a strong buyer.
Make a Strong Offer
When there are multiple offers on the line, you have to be strong when you present your offer. If you aim low, there is a slim chance that the seller will even consider your offer. Work with your real estate agent to come up with a reasonable yet competitive offer that the seller will be likely to mull over. Your offer may be your one and only shot of owning your dream home, so you might as well go big or go home!
Don't forget to keep these tips in mind if you are ever in a multiple offer situation. These tips could be the difference between owning your dream home and walking away disappointed. Good luck!
For more information, please visit: www.lindamossman.com