Dang. Double Dang and Darn it all! Just when you thought you had a clear shot on your offer for the home you've been hoping to buy your Realtor phones you with that awful sentence. "We're now in competition." What does this mean, and what can you do?
What this means is that at least one other interested party wants the home that you want. What you don't know is what their offer will be or what their terms are. But, whatever your offer contains needs to be reviewed. Ask yourself these questions:
1. Am I willing to offer over list price?
2. Am I willing to go in without "subject to financing?"
3. Am I willing to fore go an inspection?
4. Am I willing to drop any other clauses meant to protect my position?
5. Am I willing to be flexible on dates of possession?
A great Realtor will explain the risks of removing any subjects prior to your offers acceptance. While you do want to make your offer as big in money and small in subjects as possible, you also don't want to risk any big problems!
In super heated markets some buyers actually take an inspector with them to look! Taking an inspector around is not an easy thing to do....you might, however, have time to have one look at the property before the offers are considered. Otherwise, unless it is a new home with a warranty it is risky to strike an inspection. If you have the money in the bank and don't need a mortgage you can strike the subject to financing clause; however if you need a mortgage, even if you're pre-approved the bank needs to be satisfied with the exact property you want to spend their money on, so that too, is risky to strike. If you can obtain the property disclosure statement and title prior to offers being considered and they are not worrisome at all you can strike those clauses. Another common clause is to find insurance and that you can make a call about in a snap (at least during business hours). Most home insurance is easy to come by unless the home is out of a fire protection area and/or in an interface area.
If you have flexibility in your timing, you may wish to leave the dates completely open and at the seller's choice....that can often make or break a competing offer.
In competitive offers you REALLY need the help of a great Realtor. A great Realtor will always attempt to present your offer personally to the sellers and represent you in the best light. And, even the best Realtor won't win every one. Sometimes someone with unlimited reserves comes along that really, really wants the property and offers a suitcase full of cash for it. Please, don't shoot your Realtor if they have to bring you that message....
Some people completely shy away from offers in competition; however, nothing ventured, nothing gained. Not every offer in competition is a grand one; so you can go in as normal and see what happens....you might be pleasantly surprised that they picked your offer!
There are many other strategies that a Great Realtor will have to help guide you! Once again, proving that a Great Realtor is worth every cent they make and then some.
What this means is that at least one other interested party wants the home that you want. What you don't know is what their offer will be or what their terms are. But, whatever your offer contains needs to be reviewed. Ask yourself these questions:
1. Am I willing to offer over list price?
2. Am I willing to go in without "subject to financing?"
3. Am I willing to fore go an inspection?
4. Am I willing to drop any other clauses meant to protect my position?
5. Am I willing to be flexible on dates of possession?
A great Realtor will explain the risks of removing any subjects prior to your offers acceptance. While you do want to make your offer as big in money and small in subjects as possible, you also don't want to risk any big problems!
In super heated markets some buyers actually take an inspector with them to look! Taking an inspector around is not an easy thing to do....you might, however, have time to have one look at the property before the offers are considered. Otherwise, unless it is a new home with a warranty it is risky to strike an inspection. If you have the money in the bank and don't need a mortgage you can strike the subject to financing clause; however if you need a mortgage, even if you're pre-approved the bank needs to be satisfied with the exact property you want to spend their money on, so that too, is risky to strike. If you can obtain the property disclosure statement and title prior to offers being considered and they are not worrisome at all you can strike those clauses. Another common clause is to find insurance and that you can make a call about in a snap (at least during business hours). Most home insurance is easy to come by unless the home is out of a fire protection area and/or in an interface area.
If you have flexibility in your timing, you may wish to leave the dates completely open and at the seller's choice....that can often make or break a competing offer.
In competitive offers you REALLY need the help of a great Realtor. A great Realtor will always attempt to present your offer personally to the sellers and represent you in the best light. And, even the best Realtor won't win every one. Sometimes someone with unlimited reserves comes along that really, really wants the property and offers a suitcase full of cash for it. Please, don't shoot your Realtor if they have to bring you that message....
Some people completely shy away from offers in competition; however, nothing ventured, nothing gained. Not every offer in competition is a grand one; so you can go in as normal and see what happens....you might be pleasantly surprised that they picked your offer!
There are many other strategies that a Great Realtor will have to help guide you! Once again, proving that a Great Realtor is worth every cent they make and then some.
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