"We are going to write an offer on a home and we know that there will be multiple offers. Where should we come in with our offer so we win the home?"
It is not unusual to have multiple offers received on a home. That is the result of more buyers wanting to buy than there are homes available to buy. This imbalance of supply and demand causes competition for the same home and pushes the selling price higher.
How to write your offer (and how competitive to be) is usually related to how much interest a house has received while on market. Also, it is important for you to know your comfort level. How much can you truly afford? If you didn’t win this house, would you be greatly disappointed?
First, you should never offer more than your comfort level. However, if you want this particular house, this is not the time to hold back!
Your REALTOR® should be sleuthing on your behalf to see just how much attention the home has received, what the goals of the sellers may be, and who is planning to write offers against you! Your REALTOR® also has access to information about the prices of recently closed homes in the area, and others in contract, and she can learn just how many offers came in on those homes as well.
Your REALTOR® should know how to craft a strong offer and help you to put your strongest purchasing foot forward. It's not always the top number that wins, and even if you don't win, you can learn from the experience and be more prepared to write your next offer!