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Conditions In Competition

How to deal with conditional offers when your are in competition.

Mar 8, 2007 Joel Nash

In competitive offer situations it is necessary to go in with the best offer possible. Find out how to deal with conditions in your offer to maximize your chances of hav

You have dreamt of finding that perfect property, and now you have found it. The 4000sq/ft colonial with golf greens for a lawn and an Olympic size swimming pool. You rush back to your agent’s office and prepare to write the offer up.

You want to protect yourself so you have your agent make the offer conditional on some key criteria; such as financing, insurance, inspection and so on. Your happy with the starting price, deposit and conditions in the offer and your agent calls the listing agent to set up a time to present the offer.

When he gets off the phone he looks at you seriously and informs you that you are in competition for this property. He then asks, “how do you want to proceed?” Once your initial panic subsides you can move forward with the offer.

Obviously it is in your best interest to go into this situation with the largest deposit you can manage, and you should enter into the situation with the highest possible offer. But you have now rushed the process and are uncomfortable with removing all of your conditions.

There are certain steps you can take in order to maximize your chances of being successful without removing your conditions from the offer. First certain conditions can be dealt with quickly and may be able to be excluded from the offer if you do some initial homework.

Call your financial institution and ensure that your financing is in order and that this property will meet the requirements for financing. Call your insurance company and make sure that you can get insurance for the property. Decide whether or not you are comfortable not having a home inspection on the property. If you are not comfortable try to have a pre-offer inspection completed prior to the offer being presented.

Now if you absolutely need to have the offer conditional, then keep the conditional period as short as possible. This will show the homeowner that you are not tying the property up for an extended period of time. It is easier to get an extension of the conditional period than it is to win a competition scenario with a longer conditional period.

This in no way will guarantee your success when you’re in a competing offer situation. This will help maximize your chances of success.

The copyright of the article Conditions In Competition in Mortgages/Loans is owned by Joel Nash. Permission to republish Conditions In Competition in print or online must be granted by the author in writing.