08 Nov Strategies in a multiple offer situation
Strategies in a multiple offer situation you can use
For the first-time home buyer price range read about strategies in a multiple offer situation below. And other areas that have more demand than supply, we can experience multiple offers.
The seller traditionally asks for “highest and best”
When the seller receives more than one offer, they usually set a time in the future to review all offers. At this time every buyer is requested to bring forth their best offer. In other words, highest price and best terms.
What is the seller looking for?
The seller will determine highest offer by their net. In other words, the amount they receive for their bottom line. So, if you ask for seller paid closing cost just know that will affect their net. In addition, they look at inspection contingencies. Also, closing date, and earnest money and down payment amounts. A 20% down conventional loan is considered stronger financing than a 3.5% down FHA mortgage.
Do some buyers decide not to do a home inspection?
Yes, in some instances. This option does put the buyer at risk since there are unknowns. Although the seller completes a disclosure statement there could be many issues they are not aware of. In any case, be careful when you consider this option.
How should I formulate a competitive offer?
Bring forward your best offer. That is a combination of price, limited seller expenses and limited contingencies. Also, a good size down payment and earnest money amount makes your offer look stronger. Next, consider an open closing date to be picked by the seller. Lastly, listen to your agent’s suggestions. In fact, their years of experience and negotiation experience can make the difference.
If you need further information, please contact us. The Anderson team is committed to helping you though the multiple process to get you your dream home.