Buying a house can be competitive. How can you be the one to secure that home when you’re a buyer in a multiple offer situation? This is the third year in a row we have seen these situations. The inventory is low, and when a really good house comes up, there can be five offers on that property. You need to be ready, and you need to be willing to win the home bidding war.
Maintain Price Flexibility
It’s perfectly normal in a situation with multiple offers on a house that you go $5,000 or $7,000 above the asking price. With today’s interest rates as low as they are, going up to even $10,000 won’t add a huge amount to your mortgage payment. So, be ready for that.
Make a Clean Offer
Don’t overcomplicate your offer. Normal contingencies are a home inspection, pest inspection, financing, and closing within 45 days. Those are okay to put in a contract, but if there are other offers, you want yours to be as clean as possible. Don’t ask for all the articles in the barn and don’t ask for the washer and dryer to be left behind. Make it a clean, simple offer. Many people ask for surveys when you don’t really need one. You know where the property lines are.
Know the Market
Look at enough homes, even when you’re not quite ready to buy. It’s important you have enough under your belt so when a good home comes up, you can make an offer quickly. Sometimes people are looking at their first or second house, but they don’t make an offer because they haven’t seen enough on the market.
Make sure you are prequalified. That is critical. When a seller is looking at offers and there are more than one, if one is prequalified with a reputable lender and the other offer is better but there’s no prequalification, it’s likely the seller will go with the qualified offer.
Work with a Real Estate Broker in St. Joseph, MI
Find a real estate agent you trust. Agents who know the market and understand what makes a good home can alert you quickly when one is available. A lot of people will want to give you advice. Your dad’s contractor or your mom’s brother’s friend will think they can tell you something helpful. It’s okay to talk to people, but when you get advice, scrutinize it. Talk to your real estate agent and be cautious about who you listen to. Work with someone you trust who knows the market.
If you have any questions about buying a home or you’d like to hear more Berrien County real estate tips, please contact The Heaps Team at Realty Executives.