Here in Brevard County, home buyers often find themselves in multiple bid situations when shopping for a home. Inventory is often low and homes are priced incredibly well, so homes fly off the market in no time.

What can you do to stand out in such a competitive market? Here are some tips that are sure to give you a fighting chance:

Offer Over Listed Price

We know you’re cringing at the thought of paying over listed price. However, in a seller’s market, this is one of the most valuable tools you have at your disposal. Try not to get the idea that the listed price is the highest point of the home’s value. In fact, sellers will sometimes underprice their home to peak interest and start a bidding war.

The most important thing to consider if you’re going to bid high is your own budget. Establishing a budget before-hand can help keep things in perspective and allow you to feel better about bidding over list price. Besides, if that house is truly the one for you, then get out there and go for it!

Increase Your Earnest Money

Earnest money can be an incredibly effective strategy in a multiple-bid situation, and surprisingly many homebuyers aren’t familiar with the concept.

Basically, earnest money is between 1% and 2% of the overall purchase price. It protects the seller from buyers placing offers on many different homes, taking them off the market until the buyer has decided which home they like best. If the offer is accepted, the earnest money will go toward the down payment and closing costs. In most cases, if the offer falls through or if you find a problem with the property, you will get most or all your earnest money back.

Increasing your earnest money above the standard amount can show a seller how serious you are and how much you love their home. Money talks, and even a few thousand extra dollars can make a world of difference in a multiple-bid situation.

Come Prepared

Preparation is a cornerstone of success, and the housing market is no exception. In this case, coming into a multiple-bid scenario with a pre-approval letter from a local lender is simple and effective. When a seller sees a pre-approval letter, they see a qualified buyer with serious intentions, a solid budget, and a reputable mortgage lender at their side.

Morgan Financial has recognized the need for true and dependable pre-approval letters as well as a streamlined process and fast closing times. Check out our Express Pass: a powerful tool in a competitive real estate market.

Escalation Clause

An escalation clause refers to the amount of money the buyer agrees to increase their offer if there are other bids.

For example, a home in Melbourne Florida is listed at $350,000. However, judging by the neighborhood and values of similar homes in Brevard County, you wouldn’t be surprised if someone were to bid $375,000. You can respond with an escalation clause that states you are willing to go as high as $380,000.

However, make sure that the clause also states that the seller can only take the winning bid up to a point just above other competing offers. For example, if other buyers only bid up to $360,000, then the seller can only expect you to pay $361,000 rather than $380,000.

Be Flexible

Once you secure your offer on a home in a seller’s market, it’s important to make sure that the deal sticks. Many buyers start compiling a list of demands for the seller including paying for minor repairs or leaving things behind.

Remember, it’s the home itself you’re after, not necessarily the stainless-steel appliances or master bedroom set. Don’t worry about minor issues like an unfortunate paint color in the bathroom or a few stains on the carpet either. In a competitive market, do your best not to inconvenience the seller too much, because they may just move on to the next offer over things you could have easily fixed on a spare Sunday.

Write a Personal Letter

Buying and selling a home is an emotional process for everyone, certainly for the seller. Naturally, they want to know that their home is going to someone who loves it, who will take care of it, and who will make the same sort of memories they made within its walls.

A short letter simply introducing yourself and explaining why you love the home may just be enough to set you apart.

Never Fear

A competitive real estate market can be intimidating and frustrating, but having the right tools and the best professionals in the industry at your side can make finding the perfect home so much simpler. Click here to learn more about our Express Pass or call 321.265.4000 to speak to one of our mortgage professionals. We will help you stand out and secure the home of your dreams.