Updated: May 30
The inventory of homes available for sale is low. Homes are selling quickly. Sellers put their homes on the market one minute, and the next minute they are fielding offers left and right. Many sellers are receiving multiple offers. There are a few key strategies you can use to help yourself be the winning offer in a multiple offer situation.
Strong, Solid Financing
Sellers are looking for buyers with strong, solid financing. Many sellers are choosing buyers who are obtaining conventional home loan programs and are putting down 20% or more. If you are using a Veteran Affairs (VA) home loan to finance your new home, you will want your real estate broker and your VA home loan lender to go to bat for you. There are positive attributes with buyers using VA home loans.
If the seller is looking for a quick closing, that is possible with a VA home loan. In the past, it took 40 to 50 days for most VA home loans to close. According to the website mortgagesolutions.net, if you work with a VA-friendly Realtor and a VA-approved lender, you can close in as little as 30 days or even less. This is just as fast as with a traditional, conventional loan.
The VA home loan process used to come with a lot of red tape such as appraisal delays, additional fees paid by sellers, VA home inspection troubles and closing delays. This is ancient history, as these misconceptions are just not true today. Once you have your Certificate of Eligibility (COE) the loan process is smooth sailing. Be sure your real estate broker and VA home lender educate the listing broker so he can relay this information to the sellers.
If you find yourself in a multiple offer situation, it's in your best interest to offer full price or more. This year home values are expected to rise 10% year-over-year. Home values are rising. As with all home loan programs, the home will have to appraise in order for it to be approved with your VA home lender. If the home you are tying to purchase doesn't appraise, you can try to renegotiate with the sellers to purchase it for the appraised price.
Closing Date and Other Terms
Be sure to offer the sellers a closing date that is convenient for them. Don't ask for any personal property that the sellers are not already leaving with the home. Have your real estate broker advise you on other terms that you should offer that will appeal to the sellers.