How to Bid on a House with Multiple Offers
How do you bid on a house that has multiple offers? Right now there are a limited number of homes for sale here in the Flower Mound and Dallas Fort Worth area, so if you're in the market to buy a home here, chances are that you're going to possibly be putting an offer in on the same home as other home buyers. So we want to share with you just a few of our tips to help you win the bid on the house that you really want.
1. Get Pre-approved. That is totally different than just a pre-qualification. By having that pre-approval letter, it's just the same thing as you having a letter showing you have cash to be able to buy the house.
2. Ask Questions. Have your agent find out what that seller needs. Do they need a longer close date to be able to to find their next home? Or do they possibly need a lease-back after closing to be able to let them stay in their home just a little bit longer before they move into their next home? Those things can make a big, big difference. And you could even offer a lease-back at no extra charge to them. It's those small things like that that help them out.
3. The Little Things Add Up. Don't look just at the sales price. Because there's so many items in the contract that can add up to thousands of dollars for the seller. Meaning that the buyer could potentially pay for the title policy, which is generally just less than one percent of the purchase price. And the buyer could forego asking the seller to pay for a home warranty. That's anywhere from almost $600, and sometimes up to $1,000 depending on the house. The buyer could also offer to pay for the survey. Now again, that can add up to anywhere from $500 up to a thousand dollars. With the buyer offering to pay for these things, that several thousand dollars can add up to be able to put into the offer for the seller to make more money. Because if a sales price goes way out of whack, then you're looking at potential appraisal issues. Then we've got problems down the road. By doing this, it helps avoid the appraisal issues, and helps the seller to net more money, and to be able to close the transaction smoothly.
Now here's the thing, when you do these these tips or tricks to be able to help your offer get accepted, make sure you have a competent real estate agent that knows how to be able to explain this to the listing agent. That way everybody has a clear understanding of how the offer is working. The key is to make sure that your real estate agent knows what your budget is and what you're comfortable with doing before you go into these steps.
4. Hire an Experienced Agent. Make sure your agent knows what questions to ask that listing agent, understands where the market is currently and where it's headed, and knows how to construct an offer that will win you the house but also keep your best interest at heart. Be sure and speak up and let them know where you feel comfortable, and how you feel about this house. If it's the house that you MUST have, or if you're okay with losing it.
6. Another Option. If you're not comfortable with going against multiple offers in the home buying process, there's always new construction, because the builders are building all across the Dallas- Fort Worth metroplex. With a brand new house you won't have any potential maintenance issues for the first 8-10 years. Everything is brand brand new and you'll have great energy efficiency (lower utility bills). If this sounds like a better option for you, check out our new home search website below. It's basically an MLS for new construction homes.
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