For Home buyers

Multiple offers and homebuyers

Multi 2
 

Spring is a time for multiple offers on homes.  There are always homes that sell in multiple offers but not that many.    Here are some tips for buyers:

1.  This isn’t 2005, there is a limit to how much a home will appraise for.   Unless you are a cash buyer your lender will appraise the property before loaning you any money.   The home will be collateral on the loan and lenders do not want the loan amount to be higher than the value of the home.  This can be a problem if the buyer is offering more because they are also asking the sellers to pay some of their closing costs. 

2.  Generally you won’t get to see what is in the other offer and will not know who made it, but your agent should ask what is in the offer.   I like to ask if it is a good offer. 

3.  Yes you can ask for proof that there really is another offer.  Unfortunately with the bank owned properties some agents won’t cooperate.  In fact buyers should ask for proof that their offer was presented to the bank.  

4.  No you don’t always have to offer more than the asking price or even the asking price to win in a multiple offer situation but keep in mind that other buyers are competing with you and they may be willing to go over the list price.  If the numbers are close the cash buyer can win out with a lower offer. 

5.  My advice is to put your best foot forward and make your best offer and to assume that other buyers are doing the same.   If you lose out move on.  

6.  In every multiple offer situation there is a winner, someone has to be the winner it could be you. 

Don’t second guess yourself when it is all said and done.  You will wonder if you offered more than you had to or if you did not get the house if a few hundred more dollars would have done the job.  You will never know and I like to think everything happens for a reason. 

6 comments on “Multiple offers and homebuyers
  1. Susan says:

    Ok, we’re experiencing buyer’s fatique. We’re on ANOTHER offer today, in this GD min-bubble, having put in another CASH & CLOSE today. We put in an offer above list with a little wiggle room up. We will not accept extortion, so we blanked out a digit on our POF. We don’t want drool on our offer. We’re aren’t country pumpkins.

    This is getting old. People aren’t using critical thinking. This is a controlled collapse (think Japan).

    I hope we get it (primary), but it needs work. We refuse to pay a turn-key price. We made a solid offer. CASH= NO APPRAISAL failure. Any feedback?

    • Teresa Boardman says:

      It isn’t up to me it is up to the sellers. If they want more money they will say no to your offer and you will need to move on. Sellers are tired too.

  2. Susan says:

    Thank you Teresa for your feedback. This was day one of showings with 4 offers already. I think we are # 5.

    These engineered low interest rates and this rigged inventory is just stinky for us that have 825 FICO’s, sold in the bubble (regular sale), and have been shopping going on 3 years. We aren’t picky, just the inventory is awful.
    (We live in Southern Ca, the land of fruits and nuts.)

    If I had the energy (younger) I’d build a one story craftsman with a wrap around porch, and have old with new inners. But I am in “menal-pause”. Building is a pita.

    Happy 4th.

  3. Susan says:

    “mental-pause” (No sleep will melt your brain.LOL)

  4. Susan says:

    Teresa,
    I loved your comments about short sales. That article and your humble opinion are spot on. We have been used to extend and pretend on short sales where the seller had an NOD and used us to stall the auction. He used all us buyers, and has postponed the courthouse stairs auction. Now she filed BK.

    Short Sales are history for us. How would they like to be used? (What the h*ll happened to integrity in our society?)

    Anyway, the more I read your blog, the more I like you. Wish I lived in your area.

    Susan

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Teresa Boardman
Realtor®, MN,
Licensed Broker
Saint Paul Home Realty
651-216-4603
teresa(at)tboardman.com
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