Multiple Offers on the Home of your Dreams?

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.

Be Flexible!

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!

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Vicki Reed

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We found the home of your dreams…what’s next?

We’ve found your new home, negotiated the deal, now the real work begins!

As your Realtor, I will deliver the Earnest Money check to the Seller’s Agent – remember, this check will be cashed!  The funds you put down varies with the price of the home – good rule of thumb is 1% of the purchase price…$175,000 home = $1,750.00 Earnest Money.  Earnest Money is a deposit made to a seller showing the buyer’s good faith in a transaction.

I will notify your lender and provide them a copy of your Purchase Agreement. You will work with them to complete your loan process.  It is important that you respond to all of their requests as quickly as possible!  We cannot close on the purchase of your new home until they say we can!

It is important that you schedule a Home Inspection as soon as possible! The clock starts ticking immediately on our time to schedule, complete and request any inspection repairs, 12 – 15 days is standard for most Purchase Agreements.  I recommend Iron Gate Inspection Services, it is not necessary for you to be present for the entire inspection, but you should be there for the last hour so that the inspector can review the report and home with you, and as your Agent, I will stop by the Inspection as well just to make sure everything is going well.  We will work together to review the Inspection Report and formulate an Inspection Response. This is the second round of negotiations.  The key to Inspection Response negotiations is that we share the entire report with the Seller’s Agent and be reasonable in our repair requests.

Closing…finally! Again, until your lender provides “clear to close”, we are at their mercy!  We generally have an idea about when it will be, I will keep and eye process to make certain we are always in compliance with the Purchase Agreement.  I will notify you of when and where the closing will be scheduled and as we near the date…how much money you may need to bring to closing.

The most frequent questions I get about Closing are:

How long will it take to sign all the paperwork?
The closing itself generally takes from 30 to 60 minutes – sometimes longer depending on wire transfers and paperwork.

What do I need to bring to closing?
Buyers and Sellers both need a form of photo ID and any money you owe should be in the form of a cashier’s check – if over $10,000, funds are required to be wired.

As your Agent, it is my job to protect you, fight for you and navigate the process of purchasing a new home…and I am great at my job.  Contact me today and let’s get you a new home!

House shopping

Vicki Reed