In my last blog post, I mentioned that demand for homes in Park City was up 21% and inventory was down 26% during the first quarter of 2013. I have been involved in several multiple offer situations this year, representing two different sellers and four different buyers.
How did my sellers choose among potential buyers? Why did my buyers win?
- Before you start looking for homes, get pre-approved for financing. If you are paying cash, have proof of funds available. If possible, work with a local lender who is trusted among Park City agents. A seller is not going to select your offer unless they are convinced you are able to pay for the home.
- If you find the perfect home, do not delay. Write an offer and make it a good one. This is not the market for lowball offers (unless you are sure the home is overpriced). Ask for a quick response time from the seller. Your objective is to get the house under contract before you are competing with other buyers.
- If you find yourself in a multiple offer situation, you must ask yourself how it will feel if you lose the home of your dreams over $1,000 (which is about $3/month at a 4% interest rate). Even $10,000 is only $33/month at the same interest rate. In one deal I was involved with, the buyer wrote a counter-offer stating they would pay $5,000 over the next highest offer. That buyer successfully purchased that home.
- Work with a knowledgeable buyer’s agent who understands the market. Your agent will let you know if you are paying too much. A good buyer’s agent will “sell” her clients to the listing agent and give you the best chance of writing the winning offer.
Best of luck!