How to Come Out at the Top When Competing In a Multiple Offer Market

Thomas Gilliam Uncategorized Leave a Comment

Michigan has the strongest economy right now in the US and the housing market there is blooming. According to Housing Predictor, in 2017, houses that went up on the market here were sold within two months. 2018 is going to be the same. Since the demand for a home for sale in West Bloomfield, Michigan has increased, it is predicted that the inventory will be equally provided but the good ones will be snapped too fast.

If you are planning to buy a house, you should put your plan in motion now because you won’t be the only one bidding on a property.

Here’s why: what if you found your dream house but took a little longer to place an offer. The other buyers might have already showed the seller a pre-approved mortgage letter, which increases his chances of getting the house. In other cases, the seller might go with the highest bid, which also means you will lose the house if you play hardball.

Following are some strategies that will help you come out at the top when you will be competing in a multiple offer housing market:

1. Get the Mortgage Pre-Approval Letter Beforehand

This letter convinces the seller that you are serious about buying the house and you will put the loan process right in motion, when he will give you the go-ahead. When a house goes up on the market, the one thing that sellers are concerned about is how long it will stay on the market. So, you can be assured that your offer will not be rejected, as long as your counteroffer is reasonable. You can then easily present the seller with an offer and then move on to the next step.

2. Offer a High Amount of Earnest Money

This is the time to dip into your savings account to impress the buyer but only do this if you are convinced that this is the house you want to buy. This amount floats somewhere between 2% and 3% of the house’s sale price. However, you can rope in the seller by offering 5% earnest money. Remember, this amount will not be returned if you back out of the deal at the last minute.

3. Proceed with Caution during the Closing

The seller can take back the offer on his home for sale in West Bloomfield, Michigan whenever he wants, so you need to be extra cautious during the closing and when drafting your counteroffer with the real estate agent.

Do not place extra contingencies on repairs unless they are something that the buyer lied about on the home inspection report. Always be on time for the meetings and make sure that the negotiations are done in the presence of your real estate agent.

4. Do Your Homework When It Comes to Comps and the Listing Price

Often sellers set a low asking price to attract buyers. If you compare them with comps, you will find out that the seller has done this to garner more attention and multiple offers. So, during a bidding war, you can go high with your offer but not so much that you fall out of your budget.

Here’s a secret to convince the buyer why he should sell the house to you: write him a short letter on how you have fallen in love with the house and its curb appeal is beyond compare to other houses on the block. This emotional attachment might be the key to convince the seller that you are the right buyer.

If you are ready to buy a home for sale in West Bloomfield, Michigan, why not get it appraised before putting an offer on it. Visit Homes2MoveYou now and get yourself a real estate agent to see houses in areas of your liking.

About the Author
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Thomas Gilliam

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I'm a Professional Realtor for 17 years with RE/MAX CLASSIC in the Oakland County MI and the Metro Detroit area and love what I do. Real Estate is my passion... Exceeding your expectations is my goal!