Special offer

Buyers: How can you compete in multiple offers other than price?

By
Real Estate Broker/Owner with Metro Life Homes RS-78439 / BRE #01708344

Well, first of all price is probably the biggest factor in trying to compete with a multiple offer situation.

But if there are many offers within the same range, there are definitley things you can do to make your overall offer the best in the mind of the seller:

1. Shorten your inspection period to (10) days or less - really, it only takes a few days to book an inspection, and even then maybe a few days after that to assess the situation with the property.  The seller, especially if it is bank-owned, will really like a quick inpection period.

2. Of course there's the obvious - MAKE YOUR OFFER A COMPLETE PACKAGE - include your Purchase Agreement, and addendums that apply (this is VERY important - if it is a short sale, you need to include the short sale addendum.  Not only does this give you a definite time period to receive the bank's approval, but it makes the offer complete in the bank's eyes).  If it is a backup offer you are writing, BE SURE TO INCLUDE THE PURCHASE AGREEMENT ADDENDUM with the first paragraph regarding backup offers filled out.  This is extremely important as it will solidify your offer in backup position number 1 should the first fall out.  Then you will not have to negotiate if the first falls out, you just go right into escrow.  Also include your Loan Pre-Approval, Proof of Funds for the down payment, a copy of the deposit check, and perhaps a letter to the seller.

3. Remember, your offer price is a NET price, which means your offer price less any credits.  So many times buyers don't understand that.  As an example, if you offer $350,000 with $10,000 credit towards closing costs, your are offering $340,000 for the property, NOT $350,000.

4. On owner-occupied properties, give the seller an extra day or maybe even to before you take possession to the property.  This may really help them out if their logistics for moving vans and details are hectic.  You would just write the contract as taking possession Close of Escrow + 2 days, etc.

5. On-owner-occupied properties, try not to ask for personal property.  You never know, the things you ask for may have sentimental value and by you asking for them, it may make you look greedy and unsympathetic.

6. Write as short an escrow period as possible, with respect to the amount your lender will need to close the loan.  Consult with your lender on the type of loan you are using and get their input as to how many days he/she feels they can comfortably close the loan.

There are other things you can do to make your offers attractive to sellers, and I will continue this blog in a series.

Comments (2)

Jim Valentine
RE/MAX Realty Affiliates - Gardnerville, NV

Ralph,  Good advice and timely as the market changes.  We are seeing multiple offers these days and it is amazing how many agents and their buyers still act as if they are the only buyer in a buyer's market.  They aren't buying houses and the agents are wasting their time.  They should read your post.

Jun 08, 2009 01:43 AM
Catherine Myers
Windermere Bay Area Properties - Walnut Creek, CA
Walnut Creek, CA Real Estate

I just had one where the seller took the offer because the "PERSONAL LETTER" , yes, just like the "old" days - the buyer's wrote a letter to my sellers and they just loved knowing more about them, and just "felt" their desire to be in the house.  So perhaps we need to remember that sometimes just getting "back to basics" is the best thing.  Clean deal, flexible for the seller, asking what they want, and what the agent wants - and be nice! :)

Jun 14, 2009 07:19 PM