Here's How To Avoid Being Beaten Out By Other Buyers
You've found your dream home, so all you have to do is make an acceptable offer and live happily ever after... unless another buyer beats you to the punch! In a competitive marketplace, this can not only happen, but can potentially have a far greater impact than any negotiating gambit the seller would hurl your way.
Yet, more buyers erroneously fear the seller more than they do other competing buyers! That's why its important to make sure your offer strategy includes a strong stance against other potential buyers and their offers. There are several factors that make buyer competition a threat in today's real estate market.
It's a sellers' market!
First, in a competitive market with relatively few quality properties available, "Dream home" category houses will become hot properties often as soon as the For-Sale sign is planted in the yard. Most buyers want to purchase a home that requires very little fix-up.
They comment, "I want to bring in my toothbrush and immediately set up housekeeping." And to obtain these turnkey benefits, buyers are willing to pay a premium. That can translate into not only a full-price offer, but in a competition situation, one that exceeds the seller's listed price.....sometimes by many thousands of dollars!
Timing is everything!
In an active market, timing is everything. In the good old days, you might have the luxury of viewing ten or twenty homes and having the time to spend several days thinking about which one you like. Now, a cream puff home or condo (one which shows very well) will have offers on it within a few days and will be sold.
The solution is for you to have a Buyer Consultation with your Realtor to really focus on what it is you really want (and need) in your new home. We call this doing an Ultimate Scenario. Then you can act quickly when the right home comes along because you'll know what you want.
So what can you do to arm yourself to the teeth with added value to capture a seller and counteract offers from other buyers? Get Pre-Approved!
First, make sure you are financially pre-approved( without any conditions) by a lender for the mortgage you'll need and be prepared to document this fact to a seller if requested.
Be honest with the seller about your interest in purchasing the property. This doesn't necessarily mean that you won't negotiate a fair purchase; but it also doesn't mean that you'll act nonchalant and non-committal either. Sellers often choose one buyer's offer over another based on the level of personal interest and commitment the buyer appears to have to the seller's home that they love.
Lastly, make sure you fully communicate the desired outcome to the real estate consultant you're working with. Your consultant will then evaluate the best strategy to take in terms of price, purchase terms and negotiating tactics to help you realize that goal.