When many people start looking for a new home, they wonder what they should choose and how much of an investment it will be. Although many people aren't quite sure about what their new home will look like, the fact of the matter is that there are many aspects to be mindful of when it comes to real estate. From paying attention to how much things cost to looking carefully at your options, it really pays to understand and apply a little wisdom before you break ground on a project. Check out these posts to find out great tips about real estate.
Market conditions affect not only prices but buyer and seller behavior, too. As the housing market gets healthier across the country, more and more buyers could find it a challenge to secure the home of their dreams. In a hot market, acting quickly is vital, and buyers need to have their financing lined up with a preapproval from a lender before they set out to view open houses. Another tip that might help you win the purchase offer battle is riskier but possibly worth trying. Read on to find out more about making offers on multiple single-family homes at once.
Multiple Offers for Sellers and Buyers
When home inventories are low, sellers may experience quite a bit more interest in their homes than usual. That results in a happy set of circumstances for the seller – multiple offers for their home. The offers may come in at almost any price, but many desperate buyers will make offers above the asking price just to compete. This type of market environment can also spur buyers to take a similar approach and make offers on nearly any property that meets their needs.
Making Multiple Offers
When your circumstances dictate, multiple offers may be necessary. Some buyers have leases ending, and some are just tired of getting turned down. Whatever your reason, rest assured that there is nothing illegal about making offers on more than one property at a time. This action helps even the odds that at least one seller will accept your offer. As long as you do your research on each home and understand the consequences, there is nothing to prevent you from making multiple offers on various properties.
Understanding the Potential Consequences
An offer to purchase a home is a contract, and it's secured with an earnest money deposit. The amount of the deposit varies, but it is usually a percentage price of the offer price (hundreds to thousands of dollars). Earnest money means you are serious about going through with the purchase of the home. Naturally, making multiple offers can mean having enough cash on hand to comply with the earnest money requirement. When you pay the deposit, you should be prepared to lose it if you renege on the contract and don't go through with the purchase. In a competitive market, you must carefully weigh the financial consequences of making offers on a home you won't end up buying if your offer is accepted.
This issue is controversial, and many buyers, sellers, and real estate agents have opposing opinions about the practice. Speak to your real estate agent about making multiple offers to find out more.
Share16 March 2020
