Buyers Tips For Making An Offer In A Competitive Market

Dated: 05/09/2017

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Real Estate in Utah and throughout the country is experiencing lower home inventory than usual. Since supply and demand can mean that you could find yourself in a multiple offer situation, it is important to be prepared and informed on things that can give you the upper hand when making an offer on a home. 

Remember.....It is not all about price!  Making your best priced offer is very important, but it is not the only factor in winning a home with multiple offers. In fact, I have been in situations as a seller's agent where the seller chose a buyer based on other factors that made the transaction overall more appealing to their situation (and they did not pick the highest priced offer.) 

  • Be sure you have a good Agent on your side Your agent should always call the listing agent before submitting the offer. The agent can find out if there are other offers, ask when the sellers need to move and find out other details that may be accommodating to the sellers enabling you to make the offer stronger. If the buyer's agent is professional, friendly and able to present the most appealing offer, it can make a big difference. 

  • Keep a reasonable Due Diligence deadline The Due Diligence period is the amount of time that the buyer has to back out of the transaction due to any reason. If this deadline is stretched out too far, it makes the seller nervous as they don't want to worry about the delay in selling by having the  buyer back out several weeks after the contract is accepted. Keep a tight deadline, get an inspector out to the property quickly and this will keep the seller happy. Your offer could be accepted over another simply because the risk of waiting is alleviated.

  • Be as Accommodating as possible with your move-in date  Once your agent finds out when the sellers are hoping to move, try to keep your settlement deadline in line with their plans. Sometimes the seller may need a short amount of time to rent back and they may be nervous about making the transition to their new home with the right timing. If you can alleviate this stress for them by being accommodating, it could make a difference.

  • Put down a larger Earnest Money Deposit. Often times buyers will put the lowest amount of money possible down for an earnest money deposit. This will work in a slow market, but if you are competing against other buyers, you want to show you are serious about the home and leave a good deposit. Keep in mind that your Earnest Money is always refundable if you change your mind during the due diligence period. If you leave a good deposit, your offer will be more appealing to the seller.

Remember, don't let the low inventory keep you away from buying. The interest rates are still good and plenty of people are getting into homes. However, you may need to get out there quicker when you see something you like and be sure to use these tips if you are making a competing offer.  Please feel free to call me with any questions or if you need assistance buying a home.

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