Multiple offer situations are very common in our market right now due to low inventory and high demand. Today I’ll go over a few ways you can win a multiple offer situation as a homebuyer.
Once you submit an offer, if there are multiple offers on the home, the seller’s agent will come back to ask you for your highest and best offer. This is typically your last chance to make your offer look the best, so there are a few things you should consider. For example, you need to focus on what are you willing to pay for the house not to lose it, rather than getting the best deal.
Also, there are a few things that can be done to make an offer look more appealing to the seller other than just offering the most money. For example, making sure you’re pre-approved is huge in this market. If you submit an offer without being pre-approved in a multiple offer situation, there is a good chance your offer won’t get picked. Sellers view offers from pre-approved buyers almost the same way they view all-cash offers, so being pre-approved will give you the leverage you need.
You should also consider the seller’s timeline when submitting the offer. Do they need more time to get out of the house, or are they in a hurry? Figuring out what that timeline is and then crafting it into your offer is going to make it look very strong in the eyes of the seller.
Skin in the game, or due diligence money, outweighs the price. Due diligence money is also something you can craft into the offer to make it look more appealing. If there are two offers and one offer has $2,000 more for the purchase price, but the other offer has more skin in the game, the offer with more due diligence money will win as it shows the seller that buyer is more invested in the property.
On the personal side, writing a personal letter to the seller is always going to make your offer stand out. Tell them what you plan to do with the property. Pulling at their heart strings will get them more on your side.
Lastly, have your lender call the seller’s agent. Your lender can give the listing agent peace of mind about your financial situation, and that will go a long way in helping you beat out other offers.
If you have any other questions about multiple offer situations, or if you have any other real estate-related questions, please feel free to give me a call or send me an email. I look forward to hearing from you!