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Health & Fitness

Multiple Offers Are Starting to Become Common in Today's Housing Market.

Home Sellers are seeing Multiple Offers from Buyers. What can a Buyer do to compel the Seller to take their offer?

Multiple Offers Are Starting to Become Common in Today’s Housing Market.

 

It’s starting to become a Seller’s Market and multiple offers are becoming common. The longer the Buyers wait, the harder it’s going to be to win the bidding war on their perfect home.

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The housing inventory for new listings in The City of Fridley from April 2012 to March 2013 fell -9.2% and in the Twin Cities Region it fell -4.7% during the same time period, limiting the homes available for home Buyers. The demand for affordable and good-condition homes is strong. Because of today’s economic activity in our local real estate market, the supply is starting to make it a Sellers’ market. Many home buyers are submitting offers on homes that other buyer want too. They are finding themselves in a multiple offer situation. Multiple offers in real estate is a classic example of economic realities. They appear when the supply of homes is low. Buyers hate multiple offers because they can push up home prices and create an extremely stressful home-buying experience. There is nothing more frustrating to a Buyer when they have lost their dream home to another Buyer.

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Learning a few tips on how to construct your offer before it’s presented to the Seller for consideration can make a huge difference if you’re in a multiple offer situation. The difference will be losing the home and walking away from it disappointed or winning the bid on the home of your dreams, at a fair price. (Note: Sellers don’t need to disclose if they have multiple offers)

 

How can your Realtor® help you make your offer more attractive to the sellers?

 

Your Realtor® should create a Comparative Market Analysis (CMA) on the subject property and review it with you in detail. The CMA will give you any idea what the properties current market value should be, so you don’t over pay. Think of what the property is worth to you and offer the highest price you can. Lowballing your offer will not only insult the Seller but some a seller will just reject your low-ball offer all together and will not even deal with you. If you’re not willing to put you best foot forward, you’re sure to lose out to other the Buyer(s) and waste everyone’s time.

 

Get approved for a mortgage of your not paying cash, don’t just get pre-qualified, a good reputable mortgage consultant should deliver a copy of the approval letter to your Realtor® allowing them to submit it with your offer. Make as large as a down payment as you can, allowing you to show a more attractable loan product. Put down a large amount of earnest money. This gives a sign to the Seller you’re serious about a successful closing. If your current home is for sale and under contract to close, provide the Seller information about that transaction. Give the Seller the Realtors® contact information that is representing your Buyer, so they can verify your sale is solid. Also, avoid unnecessary contingencies. (Caution: waiving your inspection or financing contingency can make your offer attractive, but it's foolish.) There are many other techniques that are used depending on the type of property and seller. An experience Realtor® should be able to advise you what to do in all situations.

 

Bottom line, you need a savvy and more aggressive Realtor® in a multiple offer situation. Your agent needs to know how to operate in this market. You don’t want to be that Buyer who would have gotten the property if you had better advice. You also shouldn’t be the Buyer who doesn’t listen to your experienced Realtors® advice. They have seen Buyer lose several homes in multiple offer situations because the Buyer is trying to get the deal of the century. For an example: If you're writing offers on houses in the $350,000 range and all your offers are for $300,000; face it, you're not going to get those houses. The Seller will choose another offer. You need to be realistic because you will not be able come back to the seller and say “Ok, I am willing to pay more”. The response will be, “You should have to come in with your best price! You didn't do it, now it's too late.”

 

Courtesy of Tim Van Auken - Counselor Realty, Inc. - MN Licensed Broker / Realtor® - Equal Housing Opportunity

Real Estate Website: http://www.TheVanAukenTeam.com or http://www.TimVanAuken.com

Mortgage Consultant Website: http://www.TimSwierczek.com

 

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