Thursday, May 24, 2018

7 Tips to Help You Win in a Multiple Offer Situation

It goes without saying that the real estate market is competitive - sometimes it seems like properties are sold almost as soon as they are listed! This is due in large part to low inventories of homes across the country. One of the ways these low inventories can affect the home buying process is that it leads to many buyers finding themselves in a multiple offer scenario.

When you are competing against other buyers for a home that you love, how can you make sure that you’re presenting the strongest offer possible? Here are a few suggestions to help you win in a multiple offer situation:

1. Work with a real estate professional. Working with an agent is your best course of action! Your agent will be aware of current market conditions, take into consideration other factors that may affect the sale, and most importantly, they will help you place the strongest offer possible.

2. Offer more money. Money talks - especially in real estate. Talk with your agent about adding an escalation clause to your offer. This clause raises your offer a certain amount when you’re in a multiple offer situation. You can also consider increasing the amount of money you are placing in the escrow account to show you’re serious. A word of caution, though: you want to keep your offer inside your comfort zone. Don’t get caught up in a bidding war where you end up spending more money than you can afford, or worse, offering too much money and having to come up with the difference from the appraisal.

3. Limit Contingencies. The fewer the contingencies, the easier it will be for the deal to close. Make sure your offer is as ‘clean’ as possible and list contingencies that you deem absolutely necessary. While it can be almost impossible to have a contingency-free offer if you are financing a portion of your home with a mortgage, you can still limit the number.

4. Know what the sellers need. While money is important, there may be outside circumstances that are also important to the seller. Are they moving because they accepted a new job in a different state? They may want a quick closing so they can move on. Your agent can reach out to the seller’s agent to find out if there is a preferred timeline and you can include this in your offer.

5. Shorten due diligence period. Did your agent find out your seller wants to move quickly? Shortening your due diligence period, which is when you would do you appraisal, home inspection, and survey, may make your offer more appealing.

6. Take a backup position. If you really love the house, and your offer still isn’t accepted, consider taking a backup position. A backup position allows you to be first in line if for some reason the accepted offer falls through.

7. Stay positive. It can be incredibly frustrating to lose out on a home due to a multiple offer situation, but be sure to keep spirits up! Your agent is there to help guide you through the competitive market and present the strongest offer possible.

There are plenty of homes coming on the market every day! With a little bit of time and patience, and with the invaluable help of your real estate professional, your diligence will pay off and you will find the right home for you.