Competing offer? What to do!
You’ve found the perfect home. Congratulations! You wrote your best offer and now you’re COMPETING! What should you do?
It is not unusual in our market for buyers to compete for homes. Our buyer agents report that the majority of the offers that they write are competing with other prospective purchasers. Keep in mind, with our local limited inventory, the home you fall in love with will be loved by others. It only takes one other buyer to LOVE it to for you to start the competition. Here is a good article to read about competing offers.
Here is a list of TO-DO’s when you find out your competing:
1) Personalize your offer-write a personal (feel good) letter to the seller explaining to them how much you love their home and want to make it yours.
2) Discuss an escalation clause with your Realtor-Escalation clauses are approved by the PA association of Realtors (PAR) and there is an addendum that can be completed and used only for competition purposes. It explains to the seller that you will beat the next highest offer by a certain # not to exceed a max sales price.
3) Change your offer-Increase sales price, remove contingencies, increase deposit.
4) Getting a mortgage?-Have your loan officer call the listing agent directly to explain the benefits of working with your offer. Ken Pederson from Fairway independent mortgage offers this advice, “ In today's hot Real Estate and seller's market, getting a Pre Approval letter is really just step one. Buyers need to be sure they have a strong Pre-Approval letter which typically means it is from a solid, reputable local lender. And lastly, buyers need all the help they can get in a competing bid situation, so working with a lender that will strengthen their letter and support the buyer by communicating with the listing agent and more, is very valuable to a buyer.”
5) Have your Realtor present your offer in person to the seller. This is allowed and considered a best practice from PAR.
The Brunner Burkhart group prides itself on representing our buyers the best we can. Please feel free to contact us anytime with questions. Our on duty agent is available 7 days a week 9am-9pm.