If you’re shopping in the $200k range, you may find yourself in a multiple-bid where you’re competing against other Buyers vying for that same home. As you compete with other cash investors who are also shopping in this price range, it may be common to see two, three, four, and sometimes five or more offers on properties that are priced right and show well. Your Realtor can help you structure your offer as well as strategize steps to win the bid! Here are a few to consider:
- Pre-Approval Letter: Having this letter will confirm to the Seller that you’ve crossed your T’s and dotted your I’s in the financing realm by proving you’ve had the critical conversations necessary with your Lender to ensure you can pay for the home! Many Sellers may be hesitant to accept an offer if a Buyer doesn’t have that letter upfront and if you don’t have it ready to go, may require you to submit it within 1-3 business days of accepted offer anyway.
- Dates & Deadlines: The average deal can take 45 to 60 days from the time the offer is accepted until you get the keys to your new home. By tightening up some of the dates, it shows the Seller you’re a serious Buyer and really do want to purchase the home. This may include the Professional Home Inspection (average is about 10-12 business days and 15-20 business days for rural property), Earnest Money Deposit (can also be submitted with a check or in the form of a Promissory Note at time of offer), Closing Date (most Sellers want to close sooner than later), and many more strategies you can use to tighten up the offer.
- Contingencies: The more contingencies you have, obviously the more hurdles there are to jump through to get the deal done. Sometimes Buyers need to add in things like due diligence periods to check records with county, need to sell another home, or are asking for things that are not normally structured in the offer that can be addressed prior to writing it up, or not necessary to include at all. The sooner you can tackle and remove the contingencies ensures you can quickly and confidently move through the process with ease.
As you go through this process, always remember to put your best foot forward-regardless if there are other offers on the table or not. Also don’t try to be too unrealistic in your price, i.e. if the list price is $200k and you offer $250k, that’s nice, but at the end of the day if the purchase is being financed, the property will need to be appraised anyway. Though it may take a few tries until it all comes together, talk to your Realtor about strategies and tips on how you can structure your ideal offer ahead of time so you’re ready to go when that right house pops on the market. And above all- stay positive! The right one at the right time will come.