Handling a Multiple Offer Situation
Buyers usually face a fierce competition in the property market. This is great news for any seller intending to sell a home. But, if you are a buyer, it leaves you with an option to think wisely before making any final decision.
Regarding this, the difference between a property’s selling and asking price could be huge. Whereas the selling price could be something well above the original price.
Sometimes, realtors persuade owners to list a home below its original price to wage a bidding war. The property owners on their turn hold many open houses and get to deal with the offers later.
In such a situation you, as a buyer, can feel anxious and sense that gradually the situation is getting out of control. When something seems so lucrative we ignore our logical side and get carried away. So, you have to do all calculations beforehand and be prepared for the worst when you don’t get the property.
If a seller takes time to let you know of the final decision, you can do the following to be in control:
- Ensure a source of financing for the new home.
- Get the property title in order. Sellers consider fewer subjects more convenient.
- Instead of adding the “subject to inspection” term, do the inspection during the visit. This will open up the opportunity for you to get an instant deal.
- Sit down with your realtor and try to get a perspective on how many competitors are there. This will give you an edge.
- Be confident and establish a price to offer in conjunction with your realtor. Then, if you lose the home for mere $1000 difference, you won’t feel that much lost.And if you want to get the house through an aggressive approach, you can make a BULLY offer. In such a case, you send your realtor to submit an offer before the indicated date to overlap others and get a deal.
This is however a risky venture as you can end up antagonizing the owner, and losing the slightest chance of winning the race. Or, you may have to pay unnecessary premium that would not have been applicable in the first place owing to lack of or no competition. So, this is a total roll of the dice.
To conclude with: never ever rely on an oral agreement. Those words of mouth can change as soon as the seller receives a more lucrative offer. Have everything written on a contract paper. The contract paper should include all your terms and conditions. And, unless the seller signs it, you cannot expect anything for sure.