In part one of this series, we discussed the first consideration in making a competitive offer on a home, which is deciding what you can afford to offer. We suggest talking with your mortgage lender about preapproval BEFORE looking at houses.
The second thing you should consider is how to make your offer competitive in ways other than the price.
This means making your offer as clean as possible. Be prepared to pay your own closing costs and other additional costs that will come up during the closing process, such as the price for an inspection and an appraisal. Also, be prepared to buy the house AS IS! With the possibility of multiple offers, there will be little room for negotiating over repairs or what furniture and appliances stay or go. So, when deciding what price you feel comfortable offering, keep in mind the money you will be spending to make any repairs or changes.
Check back next week for our third and final tip on making the most competitive offer in a seller’s market!