Buying a Freddie Mac Foreclosure - What makes an offer the better offer in a multiple situation?
A few days ago I posted an article called Buying a Freddie Mac Foreclosure. In it I discussed the procedure listings agents are required to follow when submitting offers.
Today, I received an offer on a property. With it was an email from the REALTOR® who wrote the offer. He was explaining that this particular buyer had recently been in several multiple offer situations. He was hoping that this offer was written quick enough and high enough to get it accepted.
Everyone understands that the price you offer on any listed property is very important. But what else is important?
As I explained in Buying A Freddie Mac Foreclosure, timing is very important. The sooner you can get an offer submitted, the better off you are.
What else? What can make your offer better than other offers in a multiple situation?
Give the seller time to respond. Three - Five days is preferable. They may respond sooner, but if they don't, and you do not give them enough time, your offer will expire. Once it expires in the system you have to start over and resubmit. They might accept another offer while your offer is in the system as expired. - This is the biggest single issue I see that causes a buyer to lose a property, other than price.
The property is being sold "as-is." Do not ask for repairs or a repair allowance.
Keep in mind that anything you ask the seller to pay on the buyer's behalf reduces the seller's net proceeds. You can ask for the seller to pay for the buyer's closing cost when there is a mortgage involved, but do not ask for the seller to pay for any prepaid items, such as insurance, taxes and mortgage escrow items.
Do not write any "weird stuff" into the offer. You cannot move in before you close. You cannot do repairs before you close. And the listing agent has no way to submit a two page (or even one page) explanation of why you are offering what you are offering.
Finally, make sure all of the required documents and information is submitted with the offer.