Home Buying – How to Deal With Multiple Offers

For some potential home buyers, it could take weeks or longer to find the right home worth a bid. If you’re like me, you’ve probably toured every potential property for sale in town before you discovered that one home that just clicked with you. You could afford it, you loved the neighborhoods, and you would be close to work, school, and other favorite haunts. Then just as you make the bid, another party does the same, and soon other buyers are interested in “your” house.Depending on the state of the real estate market and your budget, you may go one way or the other in reaction. If you really want the house, you may be inclined to top the highest bid, but you don’t want to go overboard and end up committing to a mortgage you can’t afford. It is therefore important to know that you don’t necessarily have to bid high to get the house you want.Just because another buyer has offered more money of your dream house does not mean that the seller will accept that bid. The seller may choose any party he/she wishes, or decide to take the home off the market if not wholly satisfied. More than price are considered when it comes to choosing the right buyer for a home:
Closing costs – A potential buyer could outbid you on price, but offer nothing in the way of handling closing costs. If you are serious about the home and can afford it, discuss with your real estate agent the possibilities of covering these costs (and making sure the seller knows it).
Qualification – A potential buyer that outbids you still needs to receive approval from a lender. Should something fall through and the buyer is not able to make good on the bid, the seller isn’t likely to accept it. It’s important to know exactly how much you can pay for a home and know you can be approved for a home loan.
Time – A seller may want to close as soon as possible in order to move or buy a new house. If a seller offering more money isn’t able to close on the seller’s schedule, that potential buyer may be turned away. It is important to know how quickly the sellers wishes to complete the sale, and determine whether or not you can abide by those needs.When dealing with multiple bids on the home you want to buy, pay attention to what other buys have offered, and research what the seller wants. It may not always be more money.

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