27 Apr What to consider in a multiple offer situation if you are the buyer
What to consider in a multiple offer situation if you are the buyer
In a real estate market filled with buyers and limited homes for sale…how can a buyer do? In a multiple offer situation, here are some helpful tips. Keep in mind the advice of an experienced real estate agent is critical in this process.
Elements of a strong offer
The goal is to provide an offer in a multiple offer situation that has the most positive considerations for the seller to accept your offer.
· Price – the highest price is always important. But it must appraise to close unless the offer is cash.
· Financing – most offers are contingent upon the buyers securing financing. In many instances a conventional offer with substantial down payment demonstrates to a seller it is more likely to close and the buyer is solid.
· Closing date – pick a date that is ideal for the seller.
· Seller paid closing costs – if you pay your own closing costs then there is a better chance the property will appraise.
· Appraisal – we are seeing some offers come in with an appraisal guarantee. That means you would add additional down payment to the loan if the appraisal is less than asking price.
· Inspection – some buyers are submitting offers without an inspection contingency. This means one less contingency to for the seller to content with.
· Possession date – traditionally possession is immediately after closing. In some instances, the seller might want to rent back for a period of time.
· Earnest money amount – historically, one percent of the sales price is common. In a competitive market more is better than less.
· Assessments – it has been common for the seller to pay all outstanding assessments on a home at closing. That is an item now more commonly negotiated.
Those are many of what to consider in a multiple offer situation if you are the buyer. But there are
many others that can be important. I suggest you have an experienced real estate agent help you negotiate and navigate all the terms of your sale.
I hope this blog on “What to consider in a multiple offer situation if you are the buyer” was helpful. Call me with questions.
Please reach out to me if you have questions about housing in Minnesota at 612-386-8600.
Real estate is a wonderful investment!