Making an Offer in a Competitive Market
So, imagine finding a home you love, making an offer, and then finding out there are other competing offers on the table. This has been the norm, in recent months, when negotiating on a property.
If you’re looking for a property in a competitive market, it is likely that there will be multiple, or competing offers. Even just one other offer can create the risk that you’ll lose the home. So how do you make sure your offer is enticing enough to win over the seller? Here are some ideas:
• Don’t make a low-ball offer. If you do, it might be dismissed and you probably won’t get another chance to bid — especially if the other competing offers are near, or over the list price.
• Have a pre-arranged mortgage and include that with your offer. This reassures the seller that there won’t be any money issues. (Most lenders will provide you with a pre-arranged mortgage certificate for this purpose.)
• Go in with a price high enough that the seller will be interested, but not so high as to be leaving your money on the table. This is tricky and requires a savvy knowledge of the current market.
• Have a professional real estate agent present the offer on your behalf. A great realtor will know how to do so professionally, and in a manner that gives you the best chance of getting the home, presenting your offer in it's best light.
In a competitive situation, working with a realtor who is an expert on the local market — and a skilled negotiator — is crucial. Looking for a like that? Give me a shout.
All the best,