Winning In Multiple Offers

Winning In Multiple Offers

It seems as if the real estate market has been on fire in several parts of the country. Interest
rates remain low and buyers are out in full force. That’s great news if you’re looking to sell your
house. Not so much if you’re looking to buy your house. Why? Because there is a lot of
competition for the houses that are for sale. In fact, a lot of the homes that are for sale, are
getting multiple offers.

If you find yourself in a situation where the house you want has multiple offers, talk with your
agent to see what you can do to win the bidding war. Asking your agent to start a dialogue with
the listing agent is a good thing. Find out if there’s anything in particular that the sellers are
looking for or anything specifically that could get your offer to stand out.
If the listing agent is reluctant to share or seems to be keeping their cards close to the chest,
here are a few tips to get your offer noticed and considered.

SALES PRICE
When it comes to the sales price, anything under full asking price probably won’t be considered.
You’re going to have to come in above or at least at the full asking price. Most offers will be
above asking price. If you choose to do that, don’t get too carried away. An above asking price
offer isn’t any good if the house won’t appraise for that value. Sellers and listing agents know
that. So unless you’re willing to waive the appraisal or pay more for the house than it’s worth
(and that’s ok too), keep your above offer price somewhat reasonable. But over asking price is
the way to go.

CONCESSIONS
Asking the sellers to pay all or even contribute to some of the closing costs should be avoided if
possible. If you’re in a position where you need some help with closing costs and it’s
unavoidable, that’s one thing. But if you can pay your own closing costs, you definitely should.
Seller contributions, whether it’s closing costs, home warranties, carpet allowances or any other
concession eats away at the sellers’ net profit. And that’s what they’re going to be looking at.
There will be other opportunities to negotiate things like that (after the inspection and/or
appraisal). Including concessions right off the bat with your offer will likely encourage sellers to
pass on your offer.

FINANCIALS
When submitting your offer, be sure to include your pre approval letter. You want to present
yourself as an excited, willing and able buyer to the sellers. You want the sellers to know that if
they choose you, the deal will close (and close on time). A pre approval letter shows that you’vebeen in contact with a mortgage lender and taken all the financial prerequisites. If you’re a cash
buyer, be willing to provide some sort of proof of funds, whether that’s a letter from your bank or
print off of your bank statement.

It can be tough out there. Buyers can find themselves discouraged after losing in multiple offers.

Hopefully, these little tips can help!

Feel free to contact me for a complimentary buyers consultation.