Low inventory and rising prices have created a market environment where multiple offers are increasingly common. When prices are rising and new listings are priced using historic 3-6 month old comparable sales, new inventory is often underpriced. Educated brokers and buyers understand this and quickly offer list or better when the market supports this.
With home prices on the rise and gaining momentum buyers are pouring back into the market as they attempt to lock in today’s prices and today’s interest rates! This creates additional challenges for buyers who falsely assume the market is what it was 2 years ago and submit aggressive offers well below list on desirable, well maintained homes only to have another buyer who has likely been in the market longer and perhaps lost a home or two they wished to purchase to another buyer who submitted a better offer. Many real estate agents fail to properly educate their clients on the current market environment while many buyers refuse to accept this until they’ve lost a home or two in a competitive bidding situation. There are a number of strategies home buyers can employ to enhance the appeal of their purchase offers and win in these multiple offer situations and below you will find a few of the more common less advanced strategies. (the more advanced strategies are reserved for our clients)
Show the Sellers You’re a Qualified Buyer – Almost every multiple offer will be accompanied by a lender letter. To stand out, ask your lender for a loan preapproval letter, which is different than a prequalified letter. Being preapproved makes you a stronger buyer in the seller’s eyes. Click here to read the rest of Strategies to Win Multiple Offer Situation
No comments:
Post a Comment