RALEIGH HOME BUYERS – WHAT TO DO WHEN YOU ENCOUNTER MULTIPLE OFFERS
If you are a buyer in the Raleigh Real Estate market, you have no doubt heard of or personally experienced the pain of multiple offers. Below certain price points in the Triangle marketplace, there is little to no inventory, and as a result, there are often many buyers competing to buy the same house. How do you as a new home buyer, put yourself ahead of the competition? As a Raleigh home seller, how do you address multiple offers, and what should you look for in an offer to determine the strength of the offer and the buyer’s motivation?
HIRE AN EXPERIENCED RALEIGH REAL ESTATE AGENT
An experienced agent who regularly works with home buyers in the Raleigh area will help put you in front of the pack in a multiple offer situation. Your agent will not only look at recent home sales in the greater Raleigh area, but will also look at inventory numbers, days on market, and other factors which all come into play in determining what your new home is worth.
Your Raleigh real estate agent will advise you to talk to your lender. Increasing the price to include closing costs paid by the seller is not always effective in a multiple offer situation.
The home still has to appraise for at least the purchase price, in order for your lender to give you as a buyer the full amount of your loan. Perhaps your lender has an option for lender paid closing costs, or perhaps, if you are a first time home buyer, your lender has some special incentives for new buyers which may include payment of closing costs, available down payment assistance, or reduced interest rate.
Your Triangle agent will also help to advise you on the terms of your offer. If you are flexible on the closing date, for example, that may help a seller select your offer over another. If you have a down payment, perhaps from your 401K or a parent, your financing may look strong to a seller. The agent will be able to navigate the specifics of your offer to present yours in the best light.
WHAT IS MY HIGHEST AND BEST OFFER?
Often, when a seller’s agent receives multiple offers, he or she will go back to all buyers’ agents and give them an opportunity to present their “highest and best” offer. This is when it is important to discuss with your agent what offer price and terms will put you ahead of your competition. It is important to understand all terms, including time frames, up front deposits, refundable and non-refundable, the inspection process, and the loan terms and closing costs. It may be helpful to review review my article on STEPS TO BUYING A HOME IN RALEIGH .
HOW DO I AS A SELLER PICK THE BEST OFFER?
Sellers should consider a multitude of factors when selecting the best offer. Many times, the highest offer is not the best offer, especially if it appears the buyer cannot or will not pay more than appraised value.
Emotions do play a factor, so a seller should consider the motivation of the buyer. Does the buyer love something about the house in particular, the neighborhood, the schools? Or is the buyer new to the area and maybe not wed to your house?
If the Raleigh home is a resale, is the buyer prepared if the inspection report shows some needed repairs? These are all questions a seller should discuss with a knowledgeable listing agent. And just because you as seller have received many offers, does not mean your agent has underpriced the house. As noted earlier, sometimes it is just a matter of lack of inventory, and your home is in a popular price point in the market.
If your home is placed in the market in its best light, cleaned and staged beautifully, with professional photographs of the interior as well as the exterior, with accurate measurements of the home and rooms, and your local Raleigh agent has helped you price the home based upon the competition in the marketplace, then in this busy Triangle market, you should expect and not be afraid of multiple offers.
If you as buyer or seller would like to discuss this topic in more detail, please feel free to visit my website, LAURIEHOWELL.COM.
TIME FOR YOUR COMMENTS
If you have ever been part of a multiple offer purchase, take a moment to leave a comment below.