You have trudged through countless houses and finally, eureka, you find the perfect home!
Now you and your Realtor rush back to the office to write up an offer, only to hear the disappointing news, “there are multiple buyers offering on the home.” How dare they? How can you give yourself the best chance to win the Multiple Offer situation?
Below are 4 Ways to help you Win!
1) Be Prepared, Be Pre-approved!
If you are not already pre-approved, winning this situation will be nearly impossible. Get a preapproval letter in hand before shopping! It’s also important to have a pre-approval letter from a well known and respected, local lender! Use the lender your Realtor suggests, or someone referred to you by a friend or family member who has obtained a loan from him or her.
2) Be Professionally Presented!
It may sound silly, but the visual aspect of your purchase offer can impact the seller’s decision. If there are four offers on a home and yours is a hand-scrawled, half-completed, nearly illegible jumble of paperwork without the proper page numberings while others are cleanly-typed, clearly organized with correct page numbering and easy for the seller to read, you are putting yourself at a disadvantage. Sign your name legibly and select a Realtor who uses good software and is very technologically forward in their operation.
3) Be as Simple as Possible!
If you can obtain the financing without asking for the seller’s to pay any of your closing costs, this is the time to use that to your advantage! Sellers often have a hard time understanding the “3 percent back in closing costs” part of a purchase agreement. If it’s difficult to understand, it can easily be set aside in favor of a more straightforward purchase agreement. Plus the listing Realtor may be cautious about the home getting an acceptable appraisal and may advise against your offer. This is especially true in a multiple offer situation since the prices offered may already be higher than list price.
4) Be Flexible!
If you can, allow the seller to select a closing date that works best for their schedule. Many times, I have been the listing agent for sellers who pick the lower dollar amount offer because of the convenience of flexible terms. Let the seller be the decision maker on as many terms as possible including personal property to be included, the closing date, or posession date (offer to let the seller have 24 hours after to closing to vacate the home).
Shopping for a house is one situation where it really pays to be prepared. Be sure to discuss with your Realtor and shopping partner, if any, exactly what is the top dollar you can spend. Adjust your search criteria accordingly so you can avoid getting into a multiple offer situation where you just can’t offer enough money. Best of Luck!
If you would like any additional information, please give me a call at 612-889-6496 or Ask Me a Question here.