Multiple Offers... Are you paying too much???
Rachel Fredrickson
Multiple Offers...
Are you paying too much???
Multiple Offers are common in today's Real Estate World! Don't run from them... (You may never buy a home) Don't fear them... (You may never buy a home) Understand the process (Education is key) and use the information below to determine your offer price and become comfortable with the buying process.
When you're looking to buy a house, it's important to align yourself with a Realtor who knows and understands Real Estate. Its important to align yourself with a Realtor who will take the time to educate you on the market and the process. I would love to be that Realtor for you.
There are some key factors that you should look at when buying a home. These factors can help you determine what price you should offer on the home you are interested in.
1) What are the comparable homes selling for in the neighborhood you are interested in? Make sure the homes you are comparing to are recent sales as the market is continuing to change. Make sure the homes are similar in style. It doesn't make sense to compare a split level home to a rambler or vice versa. Make sure the homes you are comparing to are similar in size. If you are looking to buy a 2000sq ft home, it doesn't make sense to compare it to a 4000 sq ft home.
2) Make sure you are comparing condition as well. When looking at comparable homes that have sold, you will likely see an average... Remember averages are made up of highs and lows. How does the home you are interested in compare in that spectrum? (
3) How much do you love the home? How many boxes does this home check off on your list of wants/needs? How long can you see yourself living in this home? Your answers to those questions can help you determine the strength of your offer. A question to ask yourself... If you found out that you lost to a different buyer, would you be upset if their bid was just 1k higher? If yes, maybe you should offer them 1k higher. Talk to you lender during this process. Understand how increasing your offer price by $1,000-2,000 will impact your monthly payment.
4) Lastly, the Appraisal. The appraisal is a condition of your loan. The mortgage company wants to make sure they are not lending you more than the home is worth. If the appraisal comes in low, then it's back to the negotiating table with the seller. Are they going to lower the price? Are you going to have to bring in the extra cash to cover the difference? Depending on how much you love the house, want the house you are offering on, the appraisal could also be used in a multiple offer situation to secure you the home.
All of these steps happen quickly in a multiple offer situation. So trusting your Realtor is important! Learn the process, learn your market, let you Realtor help you with these things even before you start looking at homes so that when you find the house you want to make your home, you are comfortable making an offer to secure your home.
