Multiple offers in Today's Market

The real estate market in the Minneapolis/St Paul and surrounding suburbs is heating up. There are more and more stories of multiple offers. As a buyer today you need to be ready to act on a home that fits your needs. Being ready helps you avoid feeling forced into making a decision. Here are some tips for being ready if the right one comes along. First, get pre-approved for a mortgage with a lender that can process your loan in a timely manner. After you know the payment you qualify for, decide what payment you are comfortable with. The payment you are comfortable with may be different from how much you qualify for. Your comfort level is your choice. Price isn’t all that matters in making a choice. Payment is also important and is affected by the tax amount. Check on the taxes before making an offer. Taxes can differ greatly on the same priced home in the current market and can make a big difference in your payment amount. Second, as you view homes picture yourself living in them. Look at each home as if you had to make a decision today. Well-priced homes are most likely to create the most interest. Don’t feel pushed but be ready if you find one you really like that fits your payment criteria. If you find yourself in a multiple offer situation relax and assess the situation. Have you seen many homes that fit your needs? Realize that in some cases the home may sell for more than the asking price. Decide your comfort level for price and payment. If you are asking for seller concessions remember that request reduces how much the seller gets from your offer at closing. Then make your offer.


Posted by Jeff Byrd on 04/27/2012
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