8 Strategies for Homes Buyers in a Multiple Offer Situation to Win the House
8 Ways to Win With Multiple Offers
1. It’s a Strong Seller’s Market.
In order to get any house, expect that the seller will get the price, terms and conditions they want. Be prepared to accept their terms. Let’s get you into your first choice and start building equity instead of settling for your second, third, fourth or even fifth choice and still having to accept the seller’s terms.
2. Get underwriting approval in advance.
This is completely different from a Pre Approval letter. This means you have a preapproval letter AND all your documentation has been submitted, reviewed and approved by the loan officer AND this has been sent to Underwriting for their approval. Typically underwriting approves files within 2 weeks of closing so can you see how this will give you a HUGE leg up on the other competing offers? It makes you a cash buyer! This is a huge game changer in a competing offer situation that most buyers do not take advantage of.
3. Remove contingencies.
How many? As many as you are comfortable with, which could include: home & radon inspection, termite inspection, appraisal, inspections, radon inspection. Many buyers are not comfortable waiving home inspections so another option is to agree in advance to not ask for any repairs and if you aren’t comfortable with the inspection results, you can opt to cancel the contract. Otherwise you could always put a dollar amount on any repairs you might ask for.
4. Make your first offer, your strongest & best offer.
It’s a misconception that seller’s will go back to everyone and ask for their highest & best offer. Yes, the seller could do this. They may also accept one of the offers and not negotiate at all. Or they could negotiate with a few.
What is the best offer to submit? Submit the best offer you’re are comfortable with and if we find out later that they went with an offer that was only $500 more, would you have any regrets. If the answer is no regrets, that’s your highest offer.
5. Demonstrate financial security.
Seller’s want to know that you aren’t going to get buyer’s remorse a few weeks after acceptance because you had to make such a quick decision after seeing the house for maybe 30 minutes. They don’t want to delay their moving plans or find another buyer.
Giving the seller this confidence is as easy as offering a higher than normal earnest deposit; offering a second deposit due after home inspection contingencies are removed; and consider making the earnest deposit non refundable. None of these cost the buyer money as long as you end up purchasing the house.
6. Seller choice of close date.
Your flexibility on close date can be more important to some seller’s than a higher net. Find out their ideal move date or if they are flexible, offer seller’s choice of close date and put a time frame on it that also works for you.
7. Increase the Seller’s Net.
This is what they walk away with after the sale. Setting yourself apart by offering to pay part of their closing costs shows you are creative and interested in a win-win situation.
8. Get good real estate representation.
Not only do you need an agent that can get you out to the houses within hours of showings start, you also need an agent with a reputation of keeping transac-tions together and someone knowledgeable on winning homes in multiple offer situations.
What questions can I help you with?
Contact me directly at 402-880-9027