Dealing with Multiple Offers When Buying a Home

Julie and Daniel Descrochers from Desrochers Realty Group and Coldwell Banker Burnet share their advice on making sure your offer on a new home rises to the top of the stack. Plus they shared an update on their project home in Edina.

Julie and Daniel’s thoughts are below:

Homes that are priced well and show good are selling quickly and often times in multiple offer situations over asking price. In April inventory was down by 19% over last April. We have a 2.2 month supply of inventory currently in the Twin Cities. Steps you can take as buyer to increase your chances of finding a home and getting an offer accepted. – Work with an experienced agent that that is available or has a team that is available to get you into a listing quickly. A lot of homes are selling within a couple of days on the market. You need to get into a home right away so if you like it you can make an offer quickly. Sometimes listing don’t even make it though the weekend. – Make sure you are preapproved with a good, reputable lender that can be reached on evenings and weekend for pre-approval letters and questions. – When you make an offer make sure it is as clean as possible:

  • Not contingent on the sale of your home
  • Don’t ask the seller to pay anything towards your closing cots.
  • Waive the appraisal contingency if you can (need to have cash to gap the difference in appraised value and sale price to put down on your loan)
  • Close on a date the is desirable for the seller
  • Have a strong amount of earnest money

– Use an escalation clause if you are in a multiple offer situation. What is an escalation clause? Means you will outbid any other offers by a certain price up to a certain amount. For example your Purchase price would be $4,000 over the next highest non-contingent offer up to a maximum sale price of $400,000. – Don’t make low ball offers and hope you are going to get the house. Submit a nice, strong clean offer. – If you are in a multiple offer situation and love the house don’t focus on the list price. Go as high as you feel comfortable going to get the house. Sometimes a $5,000 to $10,000 difference in price can be the difference in getting or not getting the house.

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