Tips for Utah Buyers in Multiple Offer Situations

If you’ve been following real estate trends, you probably know that our housing inventory is at an all-time low, especially in certain price ranges. This means you could find yourself in a bidding war for a home that you desperately want to buy. What can you do to increase your chances of being picked by the seller?

  1. Have your pre-approval letter ready. This tells the homeowner that you’ve already spoken with the bank, and that your finances are solid. Having a pre-approval makes you nearly as good as a cash buyer.
  2. Increase your deposit. The average earnest money ranges between $500 to $1,000. We recommend doubling it, as this money ultimately goes towards closing costs anyway.
  3. Write the seller a love letter. Tell them how much you and your family love the home. These letters pull on the seller’s heartstrings. Since the seller loves the home, they will want to sell it to someone who loves it as much as they do.
  4. Don’t lowball the seller. We will never let you run more than fair market value, so you won’t over pay for the home. However, if you’re in a multiple offer situation, a lowball offer will knock you out of the running right away.
  5. Pay the closing costs. You may think you’re making a full-price offer, but the seller doesn’t see it that way when they have to pay closing costs. Depending on the price of the home, the seller could be out $6,000 by covering closing costs. Offering to pay closing costs as a buyer gives you an edge over your competition.

We have three more tips to offer you. If you’re thinking of buying a home, give us a call or send us an email. We would be happy to help you!

 

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