If you tried buying a home lately, you’ve likely had to compete against another buyer for the same home. And if another offer was selected over yours (especially if it’s happened more than once), you might be left scratching your head wondering what you have to do to get your offer chosen.
There are actually several items that a seller considers when they have to choose from multiple offers. Here are the most common ones and what you need to do to make your offer stand out from the rest!
Price This is the most obvious factor for a seller. When you are in multiple offer situation is not the time to low-ball to the seller just to see what they’ll do. Work with your agent to see what comparable properties are selling for in the area and make a fair offer.
Terms What kind of financing are you using? Government loans (FHA and VA) are not as a attractive to a seller as a conventional loan or cash (obviously!) because there are more hoops for everyone to jump through. If a FHA or VA loan is your only option, just know that you are more likely to lose out over someone with a more attractive looking finance option. Also, ask your agent what your lender’s reputation is. If your lender is known in the area for not closing on time, your contract might lose out to another offer with a more reputable lender even if the financing options are the same.
Closing Date Here’s where you need to be flexible. Offer to close as quickly as possible, but be willing to move the closing date back if the seller can’t move in that time frame.
Closing Cost Assistance Many sellers are still of the old school mindset of “when I bought my home, I didn’t ask anyone to pay my closing costs.” And while these generally just bump up the sales price so that you can finance them into your loan, many sellers don’t truly understand closing cost and will usually chose the offer not asking for them even if the offers are completely identical. If need be, put off your purchase for a few months until you can save the money to pay your own closing costs.
Home Warranty In the grand scheme of things, this is a tiny monetary item when buying a home. However, it can make the difference in your contract being chosen or not. It often leave sellers with the feeling that they are being nickled and dimed. If possible, purchase the home warranty on your own. They usually run $450 – $1,000, depending on the size of the home.
Inspections I would never recommend someone buy a home without having a professional home inspection completed. You need to know what you are buying – the good and the bad. However, if you are competing against someone who has waived the inspection contingency, their offer will more likely than not be chosen over yours. In that case, your best bet is just to move to the next home.
If you are looking to buy a home, please contact me and I’ll let you in on all the secrets of the trade so you can get the home you’ve always dreamed of!