Ok so you found a property that you love and it just so happens everyone else does too. It’s the Rachel McAdams of homes. Theres not one thing you can say bad about it… She is perfect- I mean, it is perfect. So what are some strategies you can use to make sure you offer is chosen above the others.
The first thing you need to make sure is that your buyer’s agent is actually calling the listing agent. Too often this is missed and I cant overstate how important this is. This call is meant to find out how many offers the house has, how they are going to handle the multiple offers, andddd… What is important to the seller. Which brings me to my first point:
1. Terms: Everyone assumes it just comes down to price. Just as important as price is the terms of the offer. Imagine a seller who is getting relocated out of state and their work has only given them a timeline of 1-3 months before its finalized. Sometimes it do be like that. You can imagine flexibility for closing is as important if not MOREEEE important than price. In that scenario, if you didn’t discuss with the their agent to understand the sellers motivation, you would be missing out on a super important opportunity that could help you get the upper hand. Every sellers situation is going to be different but you definitely want to find out what that motivation is as it can be the difference between landing and losing the house. That needle that broke the camels back could be over 400 dollar home warranty. Not to mention your deadlines, closing costs, rent back, the loan type, cash or a loan, appraisal requirements, etc.
2. Time to dial it in and make it personal: For the most part, when the seller has several contracts on their desk they are only looking at 1’s and 0’s on a piece of paper. You need to break this process by disrupting them out of their logical, bottom line mentality of their brain into the emotional side by connecting with them on a human level. I suggest doing this by writing a note introducing yourself. Tell them about you kids, you job, how you grew up a few houses down and remember your grandparents driving on that very road for Sunday dinner 30 years ago or how you felt when you walked through the house and imagined your kids growing up in their home. Make it personal and make it real. Or even more impactful, make a video telling them these exact same things. Thats a great way to stand out from everyone else!
3. Strong Finacning: Too often lenders send only a pre qualification letter, meaning the lender hasn’t verified employment, income or even current debts and bills. Make sure your lender has done an ACTUAL preapproval and you have a complete file with your credit checked and all your documents submitted through under writing. Your lender is on your team! Have them give the selling agent a call to reinforce how great of a borrower you are to set you apart!
4. Sometimes, at the end of the day, the most important thing to the seller is walking away with the most amount of money: So how do you make sure your offer is accepted without overpaying when you don’t know what the other offers are… The prospect is precarious indeed. One tip that not everyone knows is a strategy called an “escalation clause.” This allows you to submit an offer with a clause that your offer would automatically increase to beat the second highest offer by a predetermined amount (typically $1,000-5,000). And to protect you from paying too much or an indefinite amount, you can set a ceiling to your offer in whats known as the “offer cap.”
Here a few tips that I’ve learned from being in the business and navigating multiple offer scenarios. At the end of the day, there will be times when someone else is willing to pay more or has terms that you can’t beat. Don’t let this get you down. Use these strategies and do your best. Leave a comment below to let me know what things you have done that has helped you win in a multiple offer scenario!