30 Apr Multiple Offers. How Do You Handle It?
Todays market is a tough one for buyers. Inventory is low and the demand is high. This means that we’re often running into multiple offers situations. Let’s look at some stats on this.
I researched single family homes that have been sold in Apple Valley from January to April of 2018. In just those 4 months, 102 homes have been sold in just Apple Valley.
- Of those 102 homes, 48 of them were $300,000 and under. That’s 47%!
- Roughly, 26 of the 48 homes were sold in multiple offers! That’s 54%.
- Of the 54 $300,000 + homes, only 16 of them were sold in multiple offers coming in at just under 30%.
Over half of the homes listed under $300,000 are selling in multiple offers. So, what do you do? How do you make your offer stand out among the rest? Below are 5 different elements to help you win your future home!
Choose a good, reputable mortgage company! Alerus will write a pre-approval letter along with a guarantee of $10,000 to the seller. This shows the validity of the pre-approval letter. Another strategy is to find a loan company who has a program where they send your file to underwriting prior to you selecting a home! Underwriting is the concrete decision of your credit request for a loan. A loan commitment letter is only granted if the buyer meets the underwriting requirements. Giving a seller a loan commitment letter along with their offer sets up the buyer with the highest state of readiness to buy a home!
High Earnest Money
Write an offer with high earnest money! If this is the house you want, there is very little risk to you offering a higher number. The inspection and appraisal process will not jeopardize you losing this money. Earnest money is protection for the seller. It gives them the assurance that the buyer will not back out of the contract without a valid cause.
Financing Deadline Date
Present your offer with a financing deadline date. In a Minnesota purchase agreement this is called a written statement option. This means that you will finish your financing well before your closing date. This will look strong to the seller!
If at all possible, let the seller pick the closing date. Lay out a range and let the seller pick what works best for them. The more flexible you are, the more appealing you look to work with.
Write a heart felt letter to the seller and ask that it be sent along with your offer! Let the seller know how excited you are about the property and the opportunity to own it. Nothing wrong with tugging at those heart strings!
Doing any combination, or all, of the above will make your offer jump out to the seller and their agent. Keep that chin up and do whatever you can to make sure you win your future home! Contact us with any questions or concerns you may have.