How Do I Get My Clients an Advantage in Multiple Offer Scenarios?
When making an offer on a home you’ve fallen in love with, don’t let a multiple offer situation discourage you from putting forth your best effort. You’ve made an offer on the home of your dreams, and you can’t wait until you get the word that it’s all yours. You’ll spruce up the kitchen and buy lounge chairs for the deck … But wait, there are five other bidders? Where’d they come from?
This type of situation can cause a great deal of anxiety, but it doesn’t have to. There are a few ways to give yourself a better chance of winning in a multiple bidder situation. Consider these eight actionable tips:
1. Make an Above-average Offer
Often, the easiest way to beat out multiple bidders is to outbid them. It sounds laughably simple, but it’s true. With my help, you can compare comparable properties and market trends to strategize an above-average offer. You might not even have to extend your budget as much as you think.
2. Start With the List Price (or more)
If there are multiple offers, that is a strong signal that the list price was compelling enough to motivate several buyers to write an offer. Don’t even think about starting below list price — that strategy is doomed to fail. Make a strong statement to the seller with a full price offer — or better!
3. Present an Approval Letter Upfront
Before making an offer, you should get pre-approved by a trusted lender, which is an extra step beyond being pre-qualified and essentially may give you the power of a cash buyer. Once you’ve done that and have found a home you’d like to make an offer on, ask your loan officer for a letter confirming your pre-approval and include it with your bid. This not only sends the message that you’re serious about the deal, but also assures the seller that there will be no financial issues later on.
4. “Cash is King”
If you should be a position to be able to make and ‘all cash offer’, do so. Sellers have been known to accept an all cash offer, even if there than another higher offer with a financing contingency, because there is one less barrier to settlement.
5. Up Your Deposit
Sometimes providing a bigger deposit check can sway a seller toward your offer, especially if you take the initiative unexpectedly. It can be considered an action of good faith, commitment and financial stability. It is all going toward the down payment anyway.
6. Put More Money Down
Along the same lines as upping your deposit, doing the same to your down payment is always attractive to a seller. This signals financial stability, commitment and flexibility. It also kick-starts the transaction if you are the winning bidder.
7. Be Personable
Though not necessarily an element of your actual offer, be sure your agent is personable and either has or strikes a bond with the seller’s agent. It can help put your offer ahead of other buyers who haven’t made the same effort. I can help build your relationship with the sellers, too, find common points of interest and identify specific things about the seller’s preferences, lifestyle and experiences. In cases where you and I can really connect, we may find the opportunity to run away from the pack with a personal addition to your offer, such as babysitting, time in a vacation home or professional services.
8. Write a Letter
By no means a last resort, writing a letter adds sentiment and emotion to a high-stakes transaction. If you’re a decent writer, spend some time putting your thoughts into a handwritten note. If you’re not comfortable with your writing abilities, ask a friend, family member or freelance writer to assist you.
These are just the basics of winning in a multiple bidder situation. I have many more tips to share with you; contact me today and let’s put you on track to outwork the competition and win the house of your dreams.