It seems incredible to say it given the recent recession, but the Greater Boston Area real estate market is very busy. Inventory of houses for sale is low and buyers are plentiful. Home Buyers have come out in full force. It could be that they have been waiting for the "bottom" to hit, or waiting for employment situations to solidify, or just that they are finally waking up to the incredible mortgage rates, but they are out and buying.
The confluence of tight inventory and lots of buyers leads to the inevitable multiple offer situation. As a matter of fact, more than 80% of the properties sold in Cambridge MA over the past few weeks have sold with multiple bids. As a buyer, how do you make sure that you are the one to "win" the multiple bid scenario and actually purchase the home? Try these tips.
1) Be prepared. Have your preapproval from your mortgage company on hand. Be ready to sign the contracts (you can view real estate contracts at Avenue3 and be sure the monies you need are ready to move.
2) Pay Attention to Details. When a seller has multiple offers to choose from, there are often a couple that look very similar. If this happens, the details matter. Be sure that your dates for inspection, purchase and sale, and closing, match those that are best for the seller. Don't ask for the appliances unless you really need them - that 8 year old refrigerator could cost you the house. And be sure that your offer is completely filled out and correctly signed so that it can be accepted.
3) Take the Seller seriously. One chance means one chance! If you are told that there are multiple bids and you need to present your best and highest offer because you will only have one shot at being picked as the buyer of the property, for goodness sake, make your best offer. Many buyers have lost the bidding process only to ask for the chance to increase their bid after a buyer has been chosen - too late. Don't make that mistake.
4) Be Bold. If you are able, if you are so inclined, or if you just have to have the house, be bold enough to drop a contingency or more than one contingency. Most often, the purchase of a home comes with the contingency for a home inspection, for mortgage financing and possibly others. If you feel confident in the outcome of either, you may want to exclude one of more of these contingencies from your offer in order to present yourself as a more commited buyer. Just be sure you understand the ramifications of removing a contingency before proceeding.
In any case, working with a well informed agent should help you secure the best possibility for success. These are highly competitive waters, be sure you have a good guide!
Find out more about how to be a Better Buyer by downloading the Avenue 3 Better Buyer Guide now.