Real Estate Tips: How To Handle Multiple Offers On A House
It’s a seller’s market in Central Florida right now. This means that there is a low real estate supply. If you are a seller, expect multiple offers for a home. If you are a buyer, prepare for a bidding war.
In this new video, The Corcoran Connection founder and top broker Jeanine Corcoran shares buyer tips on how to handle multiple offers on a house.
- Get fully approved. You can advise the seller that you will only need two-and-a-half weeks, a maximum of three, to close the deal. The two things left to do are inspection and appraisal. This is a strong proposition, even if you are a Federal Housing Administration (FHA) buyer.
- Make offers over the asking price. According to Jeanine, sellers today normally get $10K over the asking price. As a buyer, this means that you should be financially prepared for this scenario even before getting into the real estate market.
- Use an ‘escalation clause.’ An escalation clause indicates that the buyer agrees to pay a certain amount above the highest offer the seller receives. The clause includes a cap on the amount the buyer agrees to pay to prevent them from paying more than what they can afford. Ask your realtor about how to use this when purchasing a house.
- Offer the seller a home warranty during pending status. Keep in mind that it has to match the offer. Do not attempt to lowball the seller and then use this instead. These are all part of a home buying strategy.
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- Tell your story, including your credit score. Highlight why you need or deserve this house and especially the hard work it took to get to this point. Everyone loves a heartwarming story. But do not just focus on the emotional aspect.
Jeanine notes that you should include the most compelling detail—your good credit score. This is a vital detail that your lender or realtor cannot provide, so this should come from you if this is something you are willing to share.
- Include your realtor’s resume. If the seller sees that your realtor has a successful sales history, it can help boost their confidence. It lets them know that if they accept your offer, your realtor can get the job done.
For more insights on how to handle multiple offers, check out our YouTube channel or schedule a personalized consultation.
A Top Caliber Real Estate Agent Can Help You Navigate Multiple Offers On A House
The low real estate supply in Florida is expected to continue into 2021. The Orlando Regional Realtor Association noted that, as of November last year, Orlando home sales were up 20%. Inventory, on the other hand, was down 26%.
Not a lot of people are selling their houses because many still work from home. Meanwhile, the low-interest rates have enticed buyers to jump into the market now.
To help improve your chances in a competitive market like Central Florida, work with a reliable realtor who knows the ins and outs of the local communities. Call 1-844-CORCORAN today to get started.