Have you been seeing a lot of multiple offer situations lately? Low inventories and low interest rates are resulting in bidding wars in many areas. If you are working with buyers who have put in a few offers on homes that haven’t been accepted – or if you have first-time buyers in a hot market – help them get in the right mindset by setting realistic expectations.
1. Get Pre-Qualified
Make sure your offer is taken seriously by showing you have the financial ability to back it up! Getting prequalified for a mortgage (if you need one) and having a preapproval letter in hand instantly puts your offer ahead of anyone who hasn’t taken that step yet.
2. Every Minute Counts
If you see a house you like, don’t wait to make an offer! You may find that one has been accepted while you were dragging your feet. Today’s mobile signature tools, like DocuSign, make it easy to sign and submit your offer from anytime, anywhere.
3. Don’t Penny Pinch
Really love that house? Don’t submit a lowball offer. Although in many cases a seller might give you the opportunity to counteroffer, if a property has multiple offers coming in at asking price or higher, yours won’t even be in the running.
4. You Can Sweeten the Deal
There are ways to make your offer more enticing without raising your bid. You can agree that earnest money is non-refundable as proof of your commitment. You can also state that you will cover all of the closing costs. And don’t waste time asking bartering for appliances and fixtures. These moves may not help you beat a cash buyer or someone with a significantly higher offer, but they can push your offer ahead of the rest if it’s competitive.
5. Be Flexible
Some buyers elect to waive contingencies, including skipping a home inspection. Although your agent may not recommend that in the interest of protecting you as a client, it is your option if you choose to take on that risk. A less risky move is to be flexible with your timeline, allowing a seller extra time in the home after closing if they need it or opting for a shorter escrow period to close the deal faster.
You can include these tips on your agent website as a buyer resource or a frequently asked question. Just don’t forget to say where you found them!
Listing agents, have you ever had sellers accept an offer that wasn’t for the highest dollar amount in a multiple offer situation?