Mulitiple offers!

In this hot real estate market, homes that are properly priced will not be available for long. Many new listings receive multiple offers within days of a home coming to market.

This begs the question of how aggressive a prospective buyer should be in making an offer. My advice is first to consider the appropriate valuation in conjunction with your Realtor. From there you will need to consider whether you want to pay over asking price. Even high offers may be problematic however; if the lender’s appraiser determines that the property is not worth what the buyer has agreed to pay. Even if the buyer is paying cash, there is frequently a clause that the appraised value be equal to or greater than the sale price.

In instances of multiple buyers chasing the same home, timing of when you need to make an offer is important. When my buyer clients are making an offer, I will find out if the seller has agreed to give buyers until a certain time before responding. Knowing that you have some time to formulate and present your offer takes some of the pressure off making a snap decision.

Pricing is not everything. I often tell my buyer clients that they should consider the seller’s circumstances. Is there value to offering a quick close or to delay the closing? Does the buyer feel comfortable enough to forego inspections? Is there financing involved or is the buyer paying cash? Generally, the cleaner and simpler the offer, the more attractive the offer is.

At the end of the day, having a seasoned Realtor by your side to guide you through the process will help position your offer in the best light to the seller and help you stay within your comfort zone.