Do you keep losing out on your dream home due to multiple offers?
Let’s face it, a hot real estate market isn’t exactly ideal for hopeful buyers. Not only does a hot market increase overall housing prices, but it can also result in fierce competition amongst buyers. For many buyers, this can make for an incredibly stressful and emotional buying experience.
So, what’s a buyer to do in such a market?
If you’re looking to win in a competitive multiple home offer situation, you’ve come to the right place. We’re highlighting six tips and tricks on how to make your offer stand out from the competition and come out on top.
Go on, it’s time to beat the competition for once and for all!
1. Work With A Great Agent
First things first, it’s crucial to equip yourself with a top-notch real estate professional.
Remember, the best agents know exactly how to play the game. They’ve experienced multiple offers many times before and they know what it takes to get the job done. A great agent will be able to guide you through the process of multiple offers and provide you with the tools necessary for success.
A top agent is also going to have a wide selection of connections in the real estate field. This could entail connecting you to the best home loans officer to ensuring that you work with a quality lawyer.
A top agent is also going to come in handy on offer night. When you’re competing against other buyers, having an agent that is well-connected is likely to benefit your experience.
It’s also helpful to work alongside an agent that has a specialization. For example, if you’re a first time home buyer, working with an agent that works primarily with first time home buyers will be helpful. With this, they will ensure that you understand exactly how the process works and provide the utmost support.
With over 2 million registered real estate professionals in the U.S. alone, finding an agent that you trust shouldn’t be difficult.
2. Offer a Competitive Purchase Price
Let’s face it, losing out on yet another bidding war can get old pretty quickly.
With that being said, the most important factor in any offer is almost always going to be the price.
If one offer contains a significantly higher purchase price, the competing offers stand very little a chance. Let’s face it, when it comes to real estate, money talks.
In order to determine what a competitive sale price would be, it’s important to first determine the market value of the home. This is something that your real estate professional will conduct research upon and guide you through.
From here, it’s up to you to decide how much you’re willing to pay above market value. With this, it’s crucial to speak with your mortgage broker and ensure that you can afford the price that you’re looking to pay.
Remember, your competition is also going to be determining the market value of the home. To set yourself apart from the competition, it may be necessary to offer slightly above such value.
3. Minimize Your Conditions
So, what about your conditions?
Of course, submitting an offer with a finance condition and a home inspection is ideal for the majority of buyers. This helps to ensure that the buyers are making a sound decision and that the overall risks of purchasing the home are minimized.
But, in a multiple offer scenario, submitting an offer with multiple conditions isn’t going to do you any favors. In reality, a seller is always going to strive to accept as clean an offer as possible.
In multiple offers, this means buyers should do their best to minimize their conditions. For many buyers, this will mean fulfilling some important conditions prior to the offer.
For example, a buyer may have a home inspection completed before they submit their offer paperwork on a home. This will ensure that the home inspection is complete and the need for such a condition is no longer required.
4. Offer a Large Earnest Money Deposit
Every real estate purchase must be accompanied by an earnest money deposit.
This shows the seller that you’re serious about your purchase and that you’re unlikely to walk away. While there is a standard percentage for such a deposit, there’s no concrete rule as to what you can offer.
To ensure that you stand out from the competition, why not offer a slightly higher deposit? This will show your good faith to the sellers and showcase just how serious you are in the purchase.
5. Be Flexible in Your Possession Date
When it comes to purchasing a home, each buyer must outline their ideal possession date.
While your lease may expire on the first of the month, this doesn’t necessarily mean that you will be moving into your home the following day. Instead, it’s crucial to be flexible with your possession date in the event of multiple offers.
Rather than abiding by your own schedule, be upfront in asking what works best for the sellers. Remember, you want to do everything possible to appeal to the sellers and make this transaction as smooth as possible for them.
While this may entail taking possession on a less-than-ideal date, it just might be what it takes to win your dream home!
6. Get Personal
Last but not least, don’t be afraid to get personal with the sellers!
There’s no denying that money is primarily the motivating factor when a seller is selecting the winning offer. But, this isn’t to say that personal details don’t carry any weight. The reality is that some sellers will pay more attention to personal details than others.
To appeal to the seller’s personal side, be upfront and honest in letting them know how and why you love their home. In knowing these details, the sellers are often able to feel a more personal connection to the potential buyers. This is especially the case if the sellers have lived in their home for many years and feel an emotional connection to the home itself.
Alongside your offer, try submitting a letter to the sellers. This letter can outline who you are, how you envision your life in the home and what drew you to the home in the first place.
Winning in a Competitive Multiple Home Offer Situation
If you’ve lost multiple bidding wars, you know firsthand how stressful buying a house can be. This stress can become so tolling that 1 in 3 buyers admits they were reduced to tears during the buying process.
The good news is that learning how to overthrow your competition doesn’t have to be so complicated. In fact, winning in a competitive multiple home offer situation can be easy with a few key tips and tricks.
If you’re ready to purchase your dream home, allow this guide to inspire you. It’s finally time to get what you want!
Do you need mortgage advice? If so, be sure to contact us today!