With the tax credit ending soon, more buyers seem to be out lately in the Charlotte, NC. area looking at homes. The goal to get a house before the tax credit ends. But, what do you do when you find a home you want and you are in a multiple offer situation?
Most importantly do not panic. Just because there is another offer on the home you want to purchase does not mean you are going to be put in a position that you are paying more for the home than you anticipated. I ran into this situation the other day. My buyer had been out looking at homes in Charlotte. After a few times out and looking at a dozen or so homes they found the home they wanted to call their first home. When I called to inform the agent I had an offer to present I was told there is another offer that just came in on the house. She informed me after I presented my offer that the seller asked both buyers to come back with their final and best offer on the home.
I told my buyers do not panic. Here is what the fair market value of the home is. Talk it over and decide what you are comfortable presenting in an offer to own this home. But, you have to take into consideration the terms you are offering. In my case my buyers had received a significant inheritance and were putting down a large down payment. Besides the price there are other considerations that the seller will take into account when looking at the offer. Are you asking for any closing costs? How long until you are looking to close? Is there another house you need to sell? Are you looking for any special contingencies? Are you pre-approved for the mortgage or pre-qualified? These are all factors that the seller takes into account when looking at the offers.
In my particular situation, I advised my clients to look at soem fo the contingencies we had put in our intial offer and explained to them the choices they had. After a lenghty discussion and weighing the pros and cons to them we amended teh price and the contingnecies. We were not the highest offer on the table; but we were the most advantegous to the seller in terms of the conditions we set forth in our offer. Thus the seller accepted our offer over another one at a higher price.
So, I advise you before you decide to pay more than you intend for the house look at the other conditions you are asking for in the offer. Sometimes making a small adjustment to them can make your offer stand out more than another offer. Will this work all the time. NO. Being on both sides of this I have had sellers take the more money even though the terms were not as advantageous. But make sure your agent goes over the contingencies you are offering and let you know what your options in regards to them are.
I know in North Carolina a quick closing is considered anything around 30 days from contract acceptance. Also, We have two choices when it comes to home inspection contingencies. And depending on the type of loan you are lookign for can be a factor in today's market.
But above all else make informed decisions that you are comfortable with. A home purchase is going to be the largest purchase you make in your life time...the last thing you want is to be remorseful after you have closed on the home.
Dave diCecco
Realtor/Agent
www.davedicecco.com
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