Win Multiple Offer Situations in Austin Texas
It is indeed true that the great homes in the Austin area are selling fast. Crazy fast!
The competition is fierce and Austin TX home sellers are able to select the highest and, what they believe to be, the “best” contract to secure the transaction. Here are some suggestions, among many, to winning a MULTIPLE OFFER SITUATION in the Austin TX Housing Market:
I know this sounds crazy coming from an agent, right? However, every seller has his/ her own selling situation. You need an agent who “understands” the area, the community and the house, if you can. Sometimes, it is not the highest priced or the fastest closed. Every central TX home has a story. Find an experienced Realtor that knows, or can find out, that story.
While we are on the subject of a story, guess what? You have a story too. Have your agent submit a personalized letter written to the seller. Tell them your story. The story of why that house is perfect for you and your family. Buying and selling a home can be very emotional and we’ve seen that emotion be worth thousands in a transaction.
Sellers, typically, want to net the highest. Wouldn’t you? After considering several offers, many times (not always) it’s the highest bidder that wins. Gone are the days that Austin TX home buyers go “low” on the offer just to “see what the sellers say”. Right now they’re not saying anything. Why? Because, if they’ve got a good agent, they’re not taking the time to even answer those offers. Others are rolling in. So you wait and wait… and wait. Paying your own closing costs also nets the seller more.
For example: If a home sells for $200,000 with no closing costs, the seller begins calculating his/her bottom line with the $200,000 number. If a home sells for $200,000 and you want $5,000 closing costs, the seller calculates the bottom line with $195,000 number. Makes since right?
If appraisal is able to support it, or if you're a full cash buyer, at times in order to win multiple offers Austin TX home buyers sometimes have to offer over-list price. Talk to your agent and discuss what’s going on in that area. He/she should be able to look up what $ amount has been getting it done in that neighborhood.
Depending on the each individual seller situation, sometimes, a quick close can help Austin TX home buyers win in a multiple offer bid. The sooner the seller sells, the sooner they can move on. Again, your experienced Realtor can attempt find out the seller’s circumstances.
It is true that CASH is KING. In a multiple offer situation, it does not mean you are able to purchase the Austin TX home cheaper, but it does mean that there are several contingencies the seller does not have to deal with: Buyer’s financing, appraisal, funding requirements, quicker close in most cases.
If you don’t have the cash (stashed in your mattress) to purchase your Austin TX home, the next best thing is to be 'loan-aproved'. Sellers want to be assured that buyers are well-qualified. A 'verifiable' pre-approval letter indicates a loan officer has “verbally”, or preferably documentation in writing, given you approval to look for homes up to a certain dollar amount. An Austin TX home buyer that has gone through these steps show the seller that he/she is serious about buying the seller’s house.
This falls under the category of “anything to show the sellers that the buyers are very serious in purchasing that Austin TX home”. More earnest money gives the sellers an assurance that if the buyer defaults, the seller can keep the earnest money. The higher the earnest money, the more assurance it gives the seller.
Same goes with the down payment. More down payment (if possible) makes the buyers look more “serious” with the home purchase. There is also a lower loan-to-value equation that makes loan qualification easier. Bonus!
Offer a higher option fee and a shorter option period. They both work hand-in-hand. Talk to your agent to fully understand the Texas option period and what it means in the Texas real estate contract.
Every real estate transaction in Austin TX is unique! Please, please and I say again... please hire an experienced Realtor to ensure you have the absolute highest statistical chance of successfully finding and purchasing your dream home!
Remember for a Big Deal on your home, call the Big Man because Size Does Matter in Texas Real Estate.
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