Buying a Home in a Competitve Market
When home buyers outnumber sellers,
the result can be a multiple offer scenario. If you’re searching for homes in a
competitive market, such as the Plano, Frisco, McKinney and Allen, TX areas, you’ll want to take time to understand the dynamics of
multiple offers and understand how this might impact your negotiating strategy.
The key is to start by submitting
your best and highest offer in a timely manner! In addition to firming up your
financing (or paying cash) and offering flexibility on a closing date, there
are a number of other things you can do, including eliminating contingencies,
increasing your earnest money deposit, paying a higher option fee, and offering
the sellers a free lease-back, to name a few.
One of the most important things is
to submit your offer with a “meaningful” preapproval letter!
Very
strong preapproval letters consist of the following info at a minimum.
- Loan Amount
- Interest rate
- Interest rate lock expiration
- Maximum loan to value Ratio
- Loan type
- Verbiage that states the borrower’s income, downpayment assets, debts and credit score were actually verified
