Even within a slow real estate marketplace like we’re currently experiencing, there still are situations in which buyers must compete against one other offer. You will discover that price is not the only thing; therefore, create your offers with the following factors in mind:
Price: If there’s a huge different in price, it’ll win the majority of the time. More funds may make up for other factors.
Closing Date: Many sellers have a need to purchase after they’ve sold their house. Occasionally the motivation due to a job transfer or start of a fresh school year may be very strong. Be certain the offer closes within a maximum of 30 to 45 days. If you have a need to be more aggressive, work with lenders who are able to close even faster. That, sometimes, may push your offer past the other ones.
Contingencies: Within today’s slower marketplace, many houses have a financing and inspection contingency, even within under competitive circumstances. There will be times when you might waive the financing or inspection contingency to make an offer that is more compelling, yet you must know the risks in doing that. The one contingency which sellers still do not want to see is that the offer is contingent upon selling another house.
Loan Qualification: Make certain that you include a loan pre-approval with the offer. Also, you will want to play the positive aspects up of your employment if possible. You must show to a seller that you’re the better candidate to obtain a loan on the home.
Earnest Money: It’s the deposit you include with the offer to prove that you’re serious about purchasing the house. Also, it offers a seller some monetary protection within the event that a buyer does not uphold their part of the agreement. If you’re competing, be certain that you have an earnest money deposit that is “respectable.”