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

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.

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Please reach out to me if you have questions about housing in Minnesota at 612-386-8600.

 

Real estate is a wonderful investment!

Jeff Anderson The Anderson Team RE/MAX Results

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