Oh No! You’ve found the home of your dreams and so did someone else! We are starting to see multiple offers on homes in the Indianapolis area…why you ask? Inventory is low and homeowners are listening to their Realtor about the true Fair Market Value of their home and pricing it to sell! What can you do to be ready to win the bidding war? Here are a few boot camp tips to prepare you to win:
Pre-Qualify with a Lender who will be available when you need them
To compete, Buyers need to be prepared financially for the home purchase. Offering the most money might seem like the best way to win, however, Sellers don’t always choose the highest offer. Instead, they often prefer offers that are most likely to go through and that meet their conditions. You need a Lender who doesn’t work Monday through Friday and turn off the telephone and email at the end of the business day.
The Shanley Team at Inlanta Mortgage is just such a lender, take a look at my post “The Power in the Pre-Qual” to get a real understanding of their level of Customer Service AND they work when I do, which means they are available when YOU need them! Having that pre-qualification is almost as good as cash in multiple offer situations.
Offer Higher Earnest Money
Earnest Money in Indiana is typically .75% to 1% of list price, so if you are offering on a $200,000 home, $1,500 or $2,000 would be normal…but if you offered a $5,000 check (remember, it will be cashed!) AND you were pre-qualified this can sometimes impress the Sellers. Just make sure you are able to fully meet all deadlines and terms of the contract so you don’t lose your deposit.
If the Sellers are building a home or waiting for the school year to end before moving and thought it would take longer to sell their home, consider offering to allow them to stay – a post closing rent back can put you ahead of the pack if you can be flexible! I represented a Seller who was building a home and because the Buyer was flexible with possession date (Sellers were able to close and continue to live in their home for 3 additional weeks) the Sellers agreed to a purchase price $5,000 less than they wanted because they didn’t have to move twice and find short term housing!
Listen to your Realtor!
As your Agent, I am working for you to make certain you don’t get caught up in the excitement of a bidding war and overpay for a home…let me do the best job possible for you! Think you are ready to head out and start looking? Let’s talk!