The house buying process can be a nerve-wracking one. For someone trying to settle down in Orlando, Florida, you must be well aware of the fact that the market is quite competitive. The demand seems to outstrip the supply and sellers are making handsome money as a result.
So, if you’re that buyer, the first thing that you must make peace with is that your offer will not be the only one out there. If you go on to ignore this basic piece of information, you might find yourself in the unfortunate situation where you thought that you’d finally found your dream house, only that discover that it has been sold to someone else the next minute.
Let’s, therefore, go over a few pragmatic tips to help you navigate through the troubled waters of competing in a multiple offer market. These may not be a 100% foolproof; however, they will surely improve your prospects by a great deal.
Get the Pre-Approval Letter Right Away
A pre-approval letter shall communicate to the seller right away that you mean business and that you are a serious buyer. A pre-approval letter is a document showing an exact amount that you can borrow from your bank for the property. Such a document will instantly make you stand out from the rest of the buyers in Orlando, Florida, as the seller might have had many potential buyers but only you carried a pre-approval letter. They will take you more seriously because they know you have funds on hand and aren’t just window shopping.
Moreover, the letter also gives you the freedom and capability to make a serious offer on the spot if you come across your dream house during any of your visits.
Pay High Earnest Money
The idea behind earnest money is to seal the deal or provide the seller some sort of security. Earnest money is an amount that the buyer pays when his or her offer is accepted. It can be quite effective in attracting the attention of the seller.
The seller holds on to this money to ensure the buyer does not back out of the deal for any reason. The amount is usually 2% of the sale price. In a multiple offer market like that of Orlando, Florida raising this amount to between 5% and 10% shall do the trick for you.
Go Easy On the Seller Before the Closing
In a multiple offer market, the seller will have the upper hand in negotiations and even after you’ve got the deal and the secondary details such as outstanding bills, repairs, and maintenance remain going over, don’t be too demanding or aggressive, as the seller might still back out.
Do not be over-ambitious with repairs and maintenance. Just focus on the bigger repairs if there are any and explain to the seller why they are necessary.
Paying Above the listed Price
Similar to the buyer’s strategies, the sellers may also have applied some selling strategies by quoting a little less than the market price to stand out from the competition. Offer to pay a little over the quoted price (if your budget allows) and you’ll have gained their interest in your offer.
If you’re looking to buy a house anywhere in Orlando Florida, let Megan Dowdy Realty serve you and make the home buying process as a walk in the park.