In a seller’s market where the demand outstrips the supply, the market gets quite competitive for buyers. So, if you happen to be that buyer, you must understand that your offer is not going to be the only one made for a great house. If you ignore this primary piece of information, then you might end up losing a house you liked to another bidder who made a better offer than yours. Let’s, therefore, go over a few tips to help you successfully navigate through the troubled waters of a multiple offer market. These may not be a 100% foolproof; however, they sure enhance your prospects by a great margin.
Go With a Pre-Approval Letter
This helps to communicate to the sellers that the buyer means business and that they are way past the window shopping phase. A pre-approval letter is a document that stipulates the maximum amount that you can borrow from your bank. Such a document will help you to stand out in the seller’s eye, and you’ll figure on top of his consideration set. There might have been a number of visitors to their property, but probably only a maximum of two who carried a document as convincing as a pre-approval letter along. With such a document, your offer will naturally be taken more seriously than that of others. Moreover, this provides you with the freedom and the ability to make a serious offer on the spot if you stumble upon a property that you feel is the one for you.
Pay High Earnest Money
The whole idea behind paying earnest money is to seal the deal. It serves as security money for the seller. The buyer pays the earnest money to lock the seller in when his or her offer is accepted. It is quite useful in attracting the attention of the seller, and to keep them from taking any more offers or from selling to another buyer with a higher bid. The seller keeps the amount to ensure that the buyer doesn’t back out from their word either. Usually, this amount is 2% of the selling price, but there’s no reason why you shouldn’t up the stakes in a multiple offer market such as that of Orlando, by offering something from 5% to 10%.
Go Easy On the Seller before The Closing
In a multiple offer scenario, it is the seller who naturally has the upper hand in the negotiations. Therefore, do keep this in mind and do not be aggressively demanding when going over secondary details such as repairs and maintenance, or outstanding bills. The seller might back out if you are too ambitious with repairs and maintenance.
Paying A Little Above the Listed Price
If your budget allows, offer to pay a little over the quoted price and you’ll have gained the seller’s interest in the offer out of the all the other offers in a multiple offer market.
All in all, the aforementioned are some of the most vital tips to follow when stuck in a multiple offer scenario. If you’re looking to buy a house anywhere in Orlando, Florida, you can acquire our dedicated services to make the process seamless for yourself.