In a market such as this one, it is not uncommon to find yourself in a multiple offer situation. While no strategy can guarantee success, here are three mistakes to avoid in order to increase your chances of being successful in buying a home in the Greater Boston Area.
1) Assuming you will have a second chance. If you find yourself in a multiple offer situation, it is wise to make your offer a “best and final” version. This will give you the best chance of being the one to purchase the home. Others might be holding off to save a bit of negotiation for a counter offer, but your best chance at being the one to buy the home is the first time your offer is put in front of the seller. There is a chance that you will receive a request from the seller after the offers are presented, if that is the case, you can stand your ground, but at least you gave yourself your best chance to win.
2) Letting the asking price hold you back. Real estate brokers are human, and sometimes make mistakes. Pricing property is difficult in a stable market and even more difficult in a market as volatile as this. In a multiple offer situation, do not become completely fixated on the seller’s asking price, rather, think about the value of the property in relation to the market or your personal goals. Is it priced too low or too high in comparison to other similar homes? This may be a better barometer for your offer. Is it the only possible purchase you have seen after looking for two years? Perhaps it is worth more to you than anyone else. Concentrate on value and long term investment rather than trying to figure out how much higher the competing bids will go.
3) Losing it on the details. Be sure you do not complicate your offer with any details that may be unimportant to you, but might set you at a disadvantage in a competitive situation. If you really do not care about the washer and dryer, do not ask for them to be included. Find out what the seller’s preferred closing date is and meet it if you can. Do not include an overly long date for inspection as this might be the reason the seller takes another offer. Be sure your preapproval letter is up to date and has the correct information in it. If there are two or more similar offers, the seller may make a decision based on what seem like small details. Have your ducks in a row and be careful about all the information your offer contains.
Again, there is no guarantee that you will win a multiple offer situation even with a sound strategy but, you greatly increase your odds by avoiding simple mistakes like these. Keep these helpful hints in mind, find a good agent to help you and good luck out there.
Find out more about maximizing your chance to successfully buy a home in the Greater Boston Area by downloading our Better Buyer Kit today.