How to compete in a multiple offer situation.
Tips for home buyers in a hot market!
Although the Las Vegas real estate market has cooled down, it is still a very active and competitive market. If you are a home buyer who is looking to purchase a home for under $250,000 you may find your self in a multiple offer situation. We are seeing multiple offers on many homes that are priced fair and show well in this price range. Losing out on a house can be heartbreaking and frustrating for a buyer and when you work with The Sales Team we will do our best to get your offer accepted in a multiple offer situation. Below we have included a list of Henderson homes priced $200,000 to $250,000. If you would like us to create a customized search for you based on your specific criteria and budget call us at 702-845-5348.
- OFFER PRICE – If the home is under market value and your agent has confirmed this with their study of the comps you may want to consider an offer over list price. Do not make a low ball offer, it is a waste of time in a multiple offer situation. Keep in mind that if you are financing a property it must appraise for the sales price. If the property does not appraise negotiations must be made, more cash may be needed or the deal may fall apart. Ask your agent to explain the appraisal contingency in your residential purchase agreement. If the home you fall in love with is priced at market value or over you can still offer over list price but be prepared to come to the closing table with more cash if the sellers will won’t negotiate and the appraised value falls short of the sales price.
- CLOSING COSTS- Sellers are reluctant to pay buyer’s closing costs in a hot market, especially in a multiple offer situation. If you are financially able to pay for your own closing costs this will give you an advantage over other buyers.
- REPAIRS – The residential purchase agreement has a section where buyers ask the seller to be liable for a certain dollar amount of repairs that are discovered during the home inspection. The smaller that number is, the more attractive your offer will be. If you ask for $0.00 in repairs and your home inspection finds a major defect or repair, you can still negotiate, ask for the repair to be made or ask for a credit at closing. If the seller refuses you then would have to make the decision to move forward or to cancel the purchase.
- HOME WARRANTY- Many home buyers want the seller to purchase a home warranty for them. A home warranty can cost any where from $350.00 to $800.00 and most sellers are not thrilled with covering this expense. The Sales Team offers a free, basic home warranty to all of our buyers. This will make your offer more attractive not asking the seller to pay for it and you will have your home and investment protected upon closing.
- DUE DILIGENCE – Shorten the due diligence period in the residential purchase agreement. The average due diligence is 10 days. We recommend 7 days. This will be more attractive to the seller in a multiple offer situation.
- EARNEST MONEY DEPOSIT – A buyer who is buying a home must provide with an accepted offer, a deposit, known as an earnest money deposit. The amount of the deposit varies and is noted in the Multiple Listing Service. In a multiple offer situation you may want to consider increasing the requested EMD.
- FINANCING – If you plan on utilizing a FHA or VA loan you may want to consider a conventional loan. FHA and VA loans are not as attractive to sellers in a multiple offer situation. Their guidelines are stricter which may scare some agents and sellers. We highly recommend getting pre-approved and not just pre-qualified. This shows the seller that you are a serious buyer and the process has already been started.
- CASH – If you are fortunate enough to be a cash buyer then you already have an incredible advantage in a multiple offer situation. You may want to consider a short closing, waive the appraisal and do not ask for seller contributions.
See what clients are saying about The Sales Team!
Every client and each listing is different and these tips mentioned above may not apply to you or your particular situation. Make sure you are working with an experienced agent who educates you on the entire process and gives you sound advice on what is best for your situation. Many first time home buyers are on a very tight budget and they may not have the financial means to waive contingencies, make larger down payments or pay for their own repairs in a multiple offer situation. We would be happy to assist you with your home purchase and we are confident that we can help you gain an acceptance on your dream house even in a multiple offer situation. Below is a list of homes in Henderson priced from $200,000 to $250,000. Please don’t hesitate to contact us with any questions. We look forward to working with you.
Best Regards,
The Sales Team
702-845-5348
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