Competition: Buying a Home in Today’s Market
This article authored by: Rob Hallberg
If you have started your search for homes, you may be wondering where all of the homes are. The number of homes on the market is low which means there are often few to choose from.
And if you have already tried to purchase a home, you may have found that the Seller received multiple offers on YOUR home. The nerve of them! And sometimes you are outbid for the home; this article is to help you win in those situations.
Don’t Delay: If you are certain this is the home you want, place the offer NOW. Don’t wait for competing offers to come in. If you just saw it online, go see it today!
Limit Concessions: FHA & VA Buyers often need assistance with closing costs. Do not use a percentage of the sales price as it often results in more than you need. Use a reasonable dollar amount instead.
Earnest Money: Don’t be cheap. Earnest Money is refundable. Use 1% of the purchase price or a minimum of $1,000. You may also consider “rounding up”. For example, if the offer price is $180,000, round the Earnest Money up to $2,000. It shows you are serious.
Home Warranty: Don’t ask the Seller to pay for one. It sometimes irritates Sellers and you are competing to gain acceptance of your offer. You may still order one but pay for it yourself at closing.
Offer Market Value: Don’t place a low offer to have a little “wiggle room”. If the Seller receives a better offer, they may not respond to yours. Make your best offer.
Call Listing Agent: Your REALTOR® should contact the Listing Agent and find out what the Seller would prefer to see in an offer. They may want an early or late close, keep their Refrigerator, etc. Your Agent should also “chat them up” (make friends), and tell them why they should accept your offer over competing ones.
Multiple Counter: If you receive a Multiple Counter Offer, which means you are still competing for the home, your Agent should call the Listing Agent again to determine what is important and how they can win the bid.
I was just successful obtaining a home for a Buyer that was $2,000 under the competing offer, but I convinced the agent he was a better Buyer with a solid offer that is not likely to cancel over inspection issues, etc.
Rob and Catherine Hallberg are Associate Brokers with Long Realty, a Berkshire-Hathaway Affiliate and Southern Arizona’s largest Brokerage. Send Rob and Catherine an email for a fast response to your questions; for an even faster response, Call (520) 407-8667.