So, after years of planning and saving, you’re ready to buy your next home. And it couldn’t be at a better time. But as you start your home search, you realize that you’re not the only one looking for a deal. In fact, you’re up against stiff competition from other buyers who are also looking to take advantage of the current market conditions.
If you find yourself in this tough situation, don’t worry. There are a number of things you can do to increase your chances of success when you become one of multiple offers on a home.
In this article, we’ll talk about how to improve your odds of being selected in a multiple-offer situation.
Get Pre-Approved For A Mortgage
This is by far the most important thing you should do when looking to get an upper edge in a competitive buying market. Mortgage pre-approvals allow you to know exactly how much you’re able to spend on a home, so that you can put in a more accurate and realistic offer. It also sends a strong message to sellers that you’re serious about making a purchase, and can potentially increase your chances of getting the deal.
While we’re talking about mortgage pre-approvals, it’s important to note that mortgage pre-qualifications are not the same thing. A pre-qualification is basically a rough estimate of how much you can afford to spend on a home, and it’s not nearly as useful or impressive to sellers as a pre-approval.
Avoid Conditions In Your Offer
When making an offer on a home, if you can, it is helpful to avoid conditions in your offer that could make it less attractive to the sellers. For instance, if you’re selling your current home as a condition of buying the new one, you’re likely to lose out to a buyer who doesn’t have that condition in their offer. The same goes for a buyer who has an offer that is conditional upon getting financing. In a multiple offer situation, the seller will almost always choose an unconditional offer, or someone with a strong pre-approval over someone who still needs to get their mortgage approved.
Have A Large Down Payment
As a form of assurance to sellers that you’re quite literally invested in the property, a large down payment can go a long way in increasing your chances of success when making an offer on a home. Not to mention, the larger your down payment is, the smaller your monthly mortgage payments will be, making it easier to afford your new home.
Don’t Lowball
While lowballing can be a helpful tactic in some cases, it’s something you should refrain from doing when competing with other buyers. In a multiple offer situation, the seller is likely to go with the highest and best offer, so putting in a lowball offer will only hurt your chances of getting the deal.
If you’re in the market to buy a home and are up against stiff competition, following these tips can give you a better chance of success. Just remember to stay realistic, be prepared and be willing to negotiate. Good luck!