Right now the real estate market is crazy! Low inventory, low mortgage rates... it's the perfect storm! With so many homes going into multiple offer situations, you need a proven strategy to come out as the winner! Check out these tips to make sure you win the home you love!
BEFORE you even see your first home, do your "homework". Look at recent sales in the price range you're looking in. Compare the homes that may need some work with the totally updated homes. Sit with your Realtor and dig into the data of each home that sold very fast... did it go into multiple offers? How many days was the home on the market? Talk with your mortgage lender so you have a good idea of what your mortgage payment would look like at specific purchase prices, specific taxes and how much closing costs are going to be. By doing this homework now, you go into the home you like with all that info BEFORE you choose to make your offer.
Beat the masses... get in the home as soon as possible! Speed is key, if you can see the home first, you have a leg up on the other buyers. If your schedule doesn't allow a fast showing, have your Realtor set up a Zoom meeting, FaceTime, or even record a video while they are in the home. The down side is that you don't have a lot of time to "think about it..." and that's tough. The good news is by doing your homework (step #1) you won't be at the mercy of waiting for your lender to call you back with numbers... or spend time digging through previous sales to understand the local market.
A great way to separate your offer from the others is a personalized letter to the seller. And don't tell anyone I told you this... but you can write it even before you see the right home... (this saves you some time too when you need it)... Start with a general rough draft, share some info about yourself and even add in lines like "your home just spoke to me" or "I knew your home was the one the second I walk through the door"... And when you do find "the one" , then add some specifics about why you love THAT home and BAM! You won't have to worry about writers block, you'll be ready to go when you find the one.
We all know the old saying, money talks and BS walks. So while you may have had the first offer in, a great letter on why you love their home, the buck stops with the almighty dollar. BUT, it doesn't mean that you just need to give them more than asking price... WHAT?! Yup, it's true! Every home is different, different items are negotiation points and yes money is important but if you can negotiate some other benefits to your offer that works for the sellers... and then you have the perfect deal. Timetables are a great item to negotiate on, being flexible on your closing date (the sellers may still need to find a home to buy so making them homeless doesn't make you their favorite choice right lol), quick home inspection dates, faster than normal mortgage commitment, more money in the deposits are all great value adds to your offer.
Now another important strategy to keep in mind is your initial offer... this really sets the tone of the transaction for the sellers. If you offer a low ball offer just to see if you can get a deal, you've shot yourself in the foot. Also, the more you go back and forth with negotiations, the more time those other buyers can see the home and make their own offer. Once you're in a multiple offer situation, your negotiation power is just about gone! So make that first offer pretty close to their asking price, or even over asking price and ask for some closing cost credits on the backend to help you out... even if they counter offer, you have a top number in mind you want to spend so you don't have to waste time and "think about it". In order to get these sellers to work with you, you need to close the deal FAST. DO go back to your homework and see what $5,000 does to your mortgage payment... spoiler alert... it could be less than what you spend on coffee everyday 🤯. And you would know that because you did your homework... right 🤔🤣
