How Do Multiple Offers Work?

How Do Multiple Offers Work?

Multiple offers are becoming the norm in todays market but how do they work if you happen to find yourself in this situation?  Is there a protocol a seller or listing agent must follow?  Do you get to know how many and what terms the others offers are?  

Multiple offers are very common in this market and believe it or not there is no formal process a seller or agent must follow.  I will say there are popular trends I am seeing and I will cover those with you.  

What is a multiple offer situation?  The answer is simple, this happens when a seller receives more than one offer on their property.  It can be a total of two offers or twenty two offers.  It is common in todays market for an agent to predict when a property will have multiple offers and will actually make plans on how to handle that ahead of time.  For example it is common to see a home hit the market on a Thursday or Friday with deadline for offers by Sunday afternoon.

Listing agents will often first let all the agents know there are multiple offers and then set a deadline.  Setting a deadline does two things, first it sets a time so everyone knows when they need to have their offer in but also when they will know a response.  Remember buyers don’t want to be tied up in a bidding war when they could move on to another property.  Second it also creates a sense of urgency for new buyers looking at the home so they can move quick and create a stronger offer right from the start.  This market has made buyers put their best offer up front instead of just testing the seller with a weak offer.

Once the deadline passes the listing agent will gather them all, process them and put them in an easy to understand format to present to the seller.  The seller will review them, see which one works best for their situation and pick one.  This usually occurs the next day after the deadline and is rather quick, remember you don’t want buyers getting inpatient and removing their offers.

Those are just some of the basics of how multiple offers work in case you find yourself in this situation.  Be sure to check out my video about how to make your offer stand out in a multiple offer situation.  I give you tips on making a strong offer so you can increase your chance of getting that home you really want.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

Buyer Personal Letter Tips

Buyer Personal Letter Tips

If you haven’t already heard demand for homes is through the roof in some markets and price points that many buyers are trying to find new ways to set themselves apart.  One way to do that is by writing a personal letter from the buyer to the seller to help put a face behind the offer.  I want to give you some tips to take in to consideration if you decide to prepare a letter yourself.

So what exactly is this personal letter?  The letter is basically a brief letter introducing the buyer & expressing to the seller why they really like the home and would really appreciate it if their offer was chosen.  The intention is to put a face behind an offer which otherwise would just be another offer in a stack of offers.

First realize these letters can be effective so please be sure to take your time drafting this letter.  If you were the seller what would you want to hear?  Maybe you will be living at the home as opposed to turning around and using it as a rental property, that would make the seller feel better about the future of the home and even neighborhood.

Second be sure to make it personal, not only about you but also the home.  Maybe start by describing your family and why this home really fits your needs.  Is it the neighborhood or the layout, maybe you have a personal connection.  Don’t be afraid to open up and make it personal as this is very effective.

Also be specific to a particular property, don’t draft one letter and use it on all offers.  You should mention the layout, colors, upgrades in the kitchen, the big tree in the back yard, or anything that is specific to that home.  The reason is to point out a positive feature and how you plan to enjoy it and appreciate it but also to not sound so generic either.  If you sound too generic it can really take away from it being personal and remember after all this is a personal letter.

Keep in mind these letters don’t always work but I find the majority of the time it does make a difference.  There are still those sellers which at the end of the day is all about the bottom line regardless of who buys it and what they love about it.  That should distract you from not trying it, you will be more successful trying this method than if you didn’t.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

Sales Price Isn't Everything

Sales Price Isn't Everything

One mistake I often see from buyers making an offer is they only think about the sales price.  What sales price should they offer to get the home.  This is a big mistake as sales price you offer isn’t everything, instead there are many more variable to take in to consideration to make your offer more competitive.

The reality in a high demand low inventory market is the willingness for buyers to offer full price or over asking price.  The major issue with this that many buyers do not consider is the lender will want the property to appraise for the offered sales price.  The problem is many times it won’t so the seller has to consider other factors besides the sale price.

What factors am I referring too?  Well sales price isn’t everything and there are many other items to take in to consideration when putting an offer together.  For example will you be making a small down payment or large?  The smaller the down payment the higher the risk the appraisal will be an issue, so sellers like to see a higher down payment to avoid appraisal issues.  What about earnest money will you put the standard 1% or will you go higher to show you are serious?  Are you pre qualified, pre approved or fully approved for the mortgage already which is music to a seller’s ears.

How about closing costs, are you asking the seller to help pay your closing costs?  Or will you pay your own?  Will you even offer to pay the seller’s closing costs or some?

All these and many more are ways to really make your offer be strong and as you notice they have nothing to do with the sales price.  Imagine this, you offer to pay full price but offer to pay $2,000 of the seller’s closing cost, don’t ask for a home warranty and even offer to give the seller a free 10 day lease back?  Now your offer is worth more than just full price, you can add another $2,000 savings in closing costs to the sellers bottom line plus another $450 since they won’t have to pay for a home warranty.  On top off all that they can stay for 10 days free and have time to move out without being in a rush, now you see what I many about sales price not being everything?

When making an offer don’t get too caught up in the sale price instead strongly consider every other section of the contract and find ways to make every section as strong a possible.  The key however is to know your limit up front and always make your strongest offer from the start because in this market there will be no second chance.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

How To Make An Offer

How To Make An Offer

You finally find the home you want but how do you go about making a formal offer?  Making an offer on a home for sale like anything takes proper research to make an informed decision or in this case an offer to purchase the home.

First and foremost I would recommend you work with a Realtor® as they will guide you through this process the correct way.  Start by looking up comparable homes that have sold in the same area to gauge where the market stands for this property.  You will want to make adjustments and figure out what the market activity is doing for similar homes… this will give you a good idea of where you should make an offer as far as sales price.

As you may know the sales price is just one of many pieces that go in to making a formal offer.  Most buyers just think of the sales price however there is so much more to it.

What type of financing will you be doing?  How much time will you need for credit approval?  Or are you already fully credit approved?  Will you be asking the seller to help pay for your closing costs?  How about a home warranty or do you feel confident without asking for the seller to pay for one?

Have you had a chance to review the seller’s disclosure or will you put that off until you are already under contract?  How about a survey, is there an existing survey or will a new one need to be purchased?  Who will pay for it?

How about an option period, how much will you be paying for that option?  Will it be for 10 days, 7 days, 5 days… or will you not have an option period?  Will you be doing an inspection or will you pass on that too?

All these and many more are all things to take in to consideration when putting together a formal offer on a home for sale.  As you can see the sales price is just one small piece in many factors that go in to making an offer.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

How To Make Your Offer Stand Out

How To Make Your Offer Stand Out

You finally found the home you want but only to find out it has multiple offers.  Or maybe you have been making offer after offer with no luck.  How can you make your offer stand out?  I will show you how you can make your offer stand out in a sea of multiple offers.

First you will need to be sure to have a Realtor® by your side to guide you through a strong offer.  Start by checking comparable properties to see if the price is appropriate.  Once you have a good idea of what the market is doing for similar properties set a price you want to offer.  Here is the key, this is only one factor in many other factors you should consider, remember it is not all about the sales price.

Next let’s break down every section of the contract and make it as strong as possible.  Now remember you won’t be able to go all out on everything as we all have our limits but definitely draw a line for each on what you are willing to do.  I say draw a line because you need to know ahead of time where you can afford or risk to go and where you can’t, you need to know this up front going in.

Will your offer be contingent?  How much earnest money will you be putting down?  What type of financing are you doing and are you qualified, pre-approved or fully approved?  How long of an option period will you be requesting?  10 days?  7 days?  5 days?  Or how about no option period?  Inspection or no inspection?

Will you be asking the seller to pay for a home warranty, or will you skip it all together?  Do you need help paying for your closing costs or not?  How about offering to pay some of the seller’s closing costs?

All these are items you should taken in to consideration and many more.  Either way be sure to make every single item as strong as possible, with every point you make stronger it only makes your offer stand out even more.  Just remember that in a strong demand market that we are in now you may not have a second chance to make your first offer your strongest.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

Would You Pay Over Appraised Value?

With increasing demand and lower inventory I continue to see multiple offer situations which inevitably leads to the concern of paying over appraised value.  Would you do it?  Should you do it?

Prices are on the way up on a record pace and driving those prices are buyers willing to pay top dollar for real estate.  Some buyers will go as far as giving the seller asking price, above asking price and even above appraised value.  This is becoming all to common, but would you do this?

I come across this issue all the time and this is the way I like to present it to my clients.  Every client is different so there is not a single solution answer.  The biggest factor to determine if you would do this is your the buyer.  Can you do this?  Do you have the funds to pay the difference between the appraised value and proposed sales price if the lender won’t pay it?

These answers are different for each buyer, especially if they are an investor or going to be using the home as their primary residence.  For investors they are more about the figures, getting a good deal and maybe getting a property below market.  Also what is their ROI?  (Return on investment)  Usually paying over appraised value may not always make sense to them, keep in mind they tend to be less emotionally tied to the property.

On the other hand a person who will actually live at the property may have a different mindset.  They are willing to pay more since they will enjoy it for many years to come.  Maybe they are in a time crunch and have to move.  Or there are other factors like schools, location, etc… that make it worth it to that individual to pay the additional funds.

Every scenario is different but you have to evaluate where you stand, can you do it and also be sure to draw a line in the sand as well.  Set a limit because the last thing you want to do is have regrets after the sale.

With the heart of a teacher I strive to educate my clients so they can be better informed.  I strongly believe an informed consumer makes better decisions and are less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome