Updated: Sep 1, 2020
These five tips will help you win the home in multiple-offer situations.
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If you find yourself competing against multiple other buyers for the same home, what can you do to submit an offer that will win?
1. Find out the details. Learn variables such as the number of competing offers, what the seller is looking for, and what houses have been selling for in the neighborhood. These particulars will help you compete at a high level.
2. Eliminate uncertainty. To make the best offer for the seller, it’s all about eliminating their worries. If the seller is concerned about the inspection, maybe say something like, “We’re only interested in health and safety items that cost $1,000 or more.” This means the larger items such as the furnace, roof, electrical issues, sewer line, etc.
You’re telling them you’re not worried over a door that doesn’t close correctly or a broken window latch. You’d rather get the property and fix a few minor things yourself than lose out on it. This can make your offer stronger.
To make the best offer for the seller, it’s all about eliminating their worries.
3. Increase earnest money. Let’s say the seller is asking for 1% earnest money. You can increase your earnest money to 2% or 3%, and your offer looks better than the others. Your earnest money is protected; you can still back out of the transaction within the correct dates and not lose it. That money is put toward your closing costs anyway, so you’re not spending any more than you would have.
4. Ask the lender to call on your behalf. You want to ensure you have the best financing possible, so choose a strong lender, get all the documentation, then ask them to speak with the listing agent on your behalf. When I’m selling a home and a lender calls to tell me an interested buyer has met all their requirements, that tells me they may be a stronger candidate than someone whose offer price is higher.
5. Say you’ll put down the most money you can. It doesn’t matter if you can put down 5% or 20%, assure them you’ll pay the most you possibly can. During the transaction, there may be an opportunity to lower your down payment, but you’ve put your best foot forward to be considered.
If you have any questions or want more information about winning against multiple offers, please reach out via phone or email. I would love to help you. Also, if you have a topic you’d like me to cover in a future video, please let me know.