Home Buying in Brooklyn>Question Details

Saraheogden, Home Buyer in Kerhonkson, NY

How do I get a second offer accepted?

Asked by Saraheogden, Kerhonkson, NY Mon Feb 4, 2013

We found a house that we want to buy. Its in an up and coming neighborhood that is becoming increasingly difficult to buy it- there are lots of developers and cash buyers looking in the area.
We are pre-approved for an FHA loan but can't put a huge amount of cash down.
We offered 10K over the asking price to let the seller know we are really serious.
There was another offer that was higher and has a significant amount of cash to put down upfront.
I just don't know what to do as a counter offer? We can offer more but I want to know it will help us get the deal secured. Is there anything we should be doing/ offering to persuade the seller?
Any tips appreciated! We are very new to this.
Thanks so much

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4
Anna Brocco’s answer
You really should be having this discussion with your agent; if the other offer is that much higher consider moving on; otherwise try making your best and final offer within your means.....
1 vote Thank Flag Link Tue Feb 5, 2013
Hi Sarah, today's market can be very challenging for buyers who are using FHA financing, especially in median price points. Cash is King but I just represented a buyer in a multiple offer situation who won their bid against a cash offer although they were using Conventional financing. Out of 3 offers, 1 was a lower cash offer while the other was a full price FHA and my buyer's was a full price Conventional financiing offer. The listing agent expressed to me that the sellers were most comfortable with my buyer's financing choice. I would recommend asking your mortgage professional if you are able to qualify for conventional financing vs. FHA; there are 5% down programs available for conventional financing. Contract terms can also be important to a seller when deciding on an offer in an aggressive market, specifically the amount of your earnest money deposit (escrow deposit), your loan commitment deadline and the number of days in your inspection period. Your pre-approval letter should show strength from a reputable mortgage professional and should give the seller confidence in your ability to be approved for the loan - see if your mortgage professional will provide a DU (desktop underwriting) report that you can offer to the seller. All of these items may increase your chances of your offer being chosen in a competitive situation. Good luck!
1 vote Thank Flag Link Mon Feb 4, 2013
Hello Saraheogden,

I'm not going to draw this out and lie to you, cash is king. If the offer that is higher than yours is an all cash deal, move on and find another property. There have been times where I have told the owners "loan or cash...Everyone gets paid at closing" and they took the higher offer with a mortgage. Everyone is happy on those deals.

This is a good reason to have a buyer's broker. One that is skilled at what the/she does, and is able to get the seller's ear... It can possibly be a win for you.

If you have any other questions, feel free to call me anytime.
Cell#: 212.300.3919


Luke Constantino
Realtor
REMAX NEW YORK
(212) 300-3919
lukeconstantino@gmail.com
261 4th Avenuue, Brooklyn NY 11215
0 votes Thank Flag Link Mon Feb 4, 2013
Dear Sarahheogden:

When you say you are pre-approved, do you mean that you went through an underwriting process and the bank issued you a loan commitment subject to locating the purchase property and appraisal of the same? If you did not go through an underwriting process and received a commitment, then you are not really pre-approved, you are only pre-qualified and that is a lot less solid than an actual commitment.

If you are simply pre-qualified, you may want to show proof of income (W-2s or 1099 forms) and your credit report to the seller and/or listing agent. This is a little unorthodox, but when you show proof of income, assets and your credit report, it will really put the listing agent and/or seller at ease with the fact that you can secure a mortgage. Many people do not feel comfortable doing this because it is quite personal information, but it can be the difference between getting the deal or not.

You should also simply give your highest and best offer and make sure it is presented to the seller. When you give the offer make sure you include all of your qualifying information and your attorney name and phone number (this shows you have an attorney and are ready to go). If your offer is subject to an inspection, make sure you have an inspector at the ready so you can set it up ASAP after your offer is accepted. Seller want buyers to move quickly, especially with a hot property so be prepared to move lightning fast.

If you want, give me a quick call and I can give you more advice. Either way, good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Mon Feb 4, 2013
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