Have you found your dream home but just learned that it already has a pending offer in place? This is a very common occurrence, especially if the home is in perfect condition and worth every penny they are asking for it. So what should you do? Should you give up? No! You should submit a back up offer. However, there are a few things you should learn before submitting your offer.
Here are a few things that will help you submit a winning back up offer.
1. It is not necessary to offer significantly more than the asking price. You don’t want to overpay for the home. Remember, it will still have to have an appraisal and be approved for that appraised amount. However, it is recommended that you offer the seller what they are asking for the home or just slightly more if the current offer is already at the asking price.
2. You should always get pre-approved before attempting to buy any home. This could mean the difference between having the seller accept your offer or someone else’s offer. If you submit a back up offer, and the other deal falters in any way, you will more than likely get the backup offer over someone else that has not been pre-approved. In addition, you should include in your offer that your credit and your financials have already been reviewed by your lender. This just puts you one more step ahead of everyone else.
3. You should show the seller that you are flexible. Sometimes sellers need to close quickly and others need a longer period of time close. The more flexible you are the more likely you are to have your back up offer accepted over another offer.
4. Try to write your offer without contingencies or as few contingencies as possible. If your offer has no contingencies and with the other offer the seller will have to wait for the buyer to sell their home, you will more often than not get the deal.
5. Try to appeal to the seller on an emotional level. Ask your realtor to give the seller a personal letter from you introducing yourself and letting them know what you love about their home and why you feel you are the perfect buyer.
Generally, a seller has an emotional attachment to the home and wants to see it go to someone who loves it as much as they do and will care for it as they do. Also, by doing this, you will put a “face” to your offer whereas all of the other offers are all going to come across as impersonal, anonymous offers. It’s worth a try. You never know what might get through to a seller.
Talk to your realtor about any other tactics they have successfully used to secure a winning back up offer. Your realtor deals with these types of things every day and will be able to guide you through to the purchase of your next perfect home.