Ideally, you want to be the only buyer who makes an offer on a particular property. That way, assuming your price is acceptable to the seller, you’re almost certain to close the deal.
But, it doesn’t always work out that way. In the case of highly desirable homes, it’s very common for there to be competing offers.
So, what do you do if there’s a competing offer on a home you really want?
First, don’t panic. Just because there are other buyers interested in the property doesn’t mean you won’t get it. There are many factors that influence a seller’s decision to choose one offer over another.
For example, sellers are generally skeptical of offers from buyers who do not have a pre-approved mortgage, or have not yet put their own home on the market.
Conditional offers based on these factors are often a red flag. Most sellers will readily accept an offer conditional on a satisfactory home inspection. However, if there are other more stringent conditions – such as an offer conditional on the buyer selling his own home for a particular price, or an offer conditional on arranging satisfactory financing – many sellers will be reluctant to accept the offer