Low inventory levels in the Ocean City, Maryland real estate market, coupled with strong Buyer demand is still leading to multiple offer situations on the more desirable listings that come on the market. Multiple offer situations are a challenge to navigate and being prepared ahead of time can provide a considerable advantage. Listed below are several proactive steps you can take to be prepared for a multiple offer situation in the event you find yourself involved with one.
Know the Numbers
It is imperative that you know what the property's market value is before you head into a multiple offer scenario. This will put you in a position to make informed decisions and act decisively if needed. Research information on recent Ocean City real estate sales of similar properties ahead of time so you have an accurate property valuation range to work with.
You have to be proactive in low inventory real estate markets and aware of new listings that match your specifications as soon as they come on the market. I assist my clients with this by emailing them the new home and condo listings as they become available. This valuable service saves them a lot of time and ensures they do not miss out on a good opportunity.
It is easy to get caught up in the action of a multiple offer situation and overpay or concede valuable contract protections. To avoid this, work with a reputable Ocean City real estate agent that will protect your interests and advise you accordingly. This is where knowing the property's value ahead of time can be helpful. You are then able to make price and strategy adjustments for condition, views and amenities.
Keep It Clean
Real estate offers are more than just the offer price. Contract contingencies such as inspections, Seller credits and closing dates can also have a significant impact on the Seller's decision in a multiple offer scenario. Include the contract contingencies that you need to protect your interests, but avoid anything unnecessary that will over-complicate the offer.
If you will be financing your Ocean City real estate purchase you will want to get pre-approved for the mortgage ahead of time. Multiple offer situations move quickly. Having mortgage pre-approval secured will provide an advantage in multiple offer scenarios and let the Seller know that you are qualified to follow-through on the purchase.
The standard contract of sale for Maryland real estate purchases has numerous Buyer protections that can be leveraged to your advantage in multiple offer situations, especially in securing the property quickly. I would be glad to discuss these strategies with you in greater detail. Feel free to contact me directly anytime at 443-614-9179.
In most situations an escalation clause and can be utilized in an Ocean City real estate offer. If needed, an escalation clause automatically increases your offer price above the price in other offers. You choose the escalation price ceiling and the amount the offer increases by. If an escalation clause is executed properly it will enable you to make a strong, competitive offer without unnecessarily over-bidding.
I have successfully negotiated dozens of contracts for my real estate clients over the past several years that were involved in multiple offer situations. If you would like to discuss this process in greater detail or have any other questions regarding real estate in Ocean City or the surrounding areas feel free to contact me directly at 443-614-9179 or via email.