With the housing ‘crunch’ in Nome it has become pretty common to see multiple offers on homes we list. Which is good. If you are the seller.
When we get multiple offers on a house, it’s typically one where we have gone in and helped the owner stage, gave a list of suggested repairs, and priced the home at market price.
Pricing too high so that ‘there’s room to negotiate’ doesn’t bring in multiple offers. Multiple offers do drive the price up, and allow sellers to negotiate more favorable terms (ie closing costs etc). In fact I’ve seen two homes in the last six months go well over list once the multiple offer situation set in.
Multiple offers stink because only one buyer will get to be happy at the end of bidding. And if you want to be that buyer, read on!
So what happens if you submit your offer and there are other offers on the table? All offers will be submitted to the seller as they come in. The seller then has the option of counter offering one, or asking everyone to submit a “best and final”. The terms “best and final” means that you want to submit your very best offer. The seller will then pick one to either accept as is or to counteroffer. They are under no obligation to disclose any of the other offers, and I am prohibited from disclosing the other offers, so please don’t ask!
Tips:
- Get pre-approved for your loan BEFORE you make your offer.
- Don’t be afraid to offer $10k over asking price, sometimes that’s exactly what it takes to get the house you want.
- Asking for seller to pay a portion of your closing costs makes your offer weaker.
- Lender required repairs can be done by the buyer, offering to pay for lender required repairs is a great way to make your offer more attractive.
- Furniture, snowmachines, etc should not be included in the purchase contract
Good luck and happy shopping!