Multiple Offers - The Name of the Game
September 15, 2009
It is hard to believe that in a housing market with so much negative press that multiple offers on many listings is the norm rather than the exception. If you ask any serious buyer who is wanting to purchase a home before the first time homeowner $8,000 tax credit expires, they will tell you that the market is extraordinarily competitive for the lower priced properties. I heard of a property in Moreno Valley that allegedly had 75 offers submitted! I don't know whether the story is true or not, but I do know that it is not uncommon for there to be more than one offer for a well priced property.
So - what is a serious buyer to do?
1) Get pre approved for the loan so that your pre approval can be submitted to the listing agent when you submit the offer. It is important that the pre approval be at the same price as the offer you are submitting. This means that you and your real estate agent must stay in contact with your loan representative.
2) Your agent should contact the listing agent to get to know that agent. Knowing the listing agent may be helpful in structuring an offer.
3) It is probably wise for buyers who finds a property that suits them to discuss with their real estate agent what would be their highest and best offer. In this market, it is not a wise move to come in low in the hopes of getting a counter offer. Better to submit a clean offer.
4) With the help of your real estate agent, compose a cover letter that introduces you to the listing agent and to the seller. Some agents believe that if the seller is an institution, they don't care. The person who assesses your offer is a person and a good cover letter can some times influence the acceptance of an offer.
5) Make sure your agent keeps in touch with the listing agent. Sometimes agents submit offers and when they have not received a response they presume that their offer was rejected - not necessarily so.
If you want to succeed in purchasing a home, being persistent and realistic about your offer goes a long way toward success.
It is hard to believe that in a housing market with so much negative press that multiple offers on many listings is the norm rather than the exception. If you ask any serious buyer who is wanting to purchase a home before the first time homeowner $8,000 tax credit expires, they will tell you that the market is extraordinarily competitive for the lower priced properties. I heard of a property in Moreno Valley that allegedly had 75 offers submitted! I don't know whether the story is true or not, but I do know that it is not uncommon for there to be more than one offer for a well priced property.
So - what is a serious buyer to do?
1) Get pre approved for the loan so that your pre approval can be submitted to the listing agent when you submit the offer. It is important that the pre approval be at the same price as the offer you are submitting. This means that you and your real estate agent must stay in contact with your loan representative.
2) Your agent should contact the listing agent to get to know that agent. Knowing the listing agent may be helpful in structuring an offer.
3) It is probably wise for buyers who finds a property that suits them to discuss with their real estate agent what would be their highest and best offer. In this market, it is not a wise move to come in low in the hopes of getting a counter offer. Better to submit a clean offer.
4) With the help of your real estate agent, compose a cover letter that introduces you to the listing agent and to the seller. Some agents believe that if the seller is an institution, they don't care. The person who assesses your offer is a person and a good cover letter can some times influence the acceptance of an offer.
5) Make sure your agent keeps in touch with the listing agent. Sometimes agents submit offers and when they have not received a response they presume that their offer was rejected - not necessarily so.
If you want to succeed in purchasing a home, being persistent and realistic about your offer goes a long way toward success.
posted by shirley harry at 7:31 AM
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