For the past few months I have been constantly talking about how our market would start slowing down now that we’re into the Holidays and the Winter, but I have to admit – this year seems to be proving me wrong! While it’s true our inventory is incredibly low right now, that is making it extremely competitive for those buyers actually looking right now.
When you find yourself in a multiple offer situation, there are a few factors that play into the strength of the offer in comparison to the others.
1. Price
Obviously!
2. Length and Number of Contingencies
Ex. Home Inspection, Radon, Appraisal, etc. Shorter timeframes for these give a seller some comfort knowing if a buyer does walk away based on the inspection, it won’t be more than a few days and the other potential buyers may still be interested.
3. Type of Financing
Cash always wins. Usually a shorter time frame for closing, fewer hoops to jump through, and fewer contingencies.
Conventional financing comes in second, usually people are doing anywhere from 5-20% down and have cash just in case something happens, like a low appraisal.
FHA/VA are the weakest in financing, mostly because they take longer due to more paperwork and Federal approval. They’re still GREAT options, but the biggest drawback is the appraisal contingency, which automatically runs through the date of settlement, and can take a while to complete.
This is just a quick rundown, if you’re a seller or a buyer, there are several factors to consider when writing or evaluating offers. Let me help! Contact me.