Multiple offers got you down?
The sun is shining at the beach and our prices in Destin and 30A are lower than they have been in a real long time. The past few weeks I have been running into alot of multiple offer situations. This really can be stressful for the buyers, sellers, and agents involved. I have dealt with this situation many times because I specialize in short sales, foreclosures and great deals. Below are a few tips that I follow and they can help increase your chances for success.
1. Do not be afraid to pay full price or a bit over. I know this sounds completely crazy but it is not. If you study the comps and find that the property is under priced, it makes sense to pay a little more. Understanding this will increase your chances of finding a great deal . I have clients that will bid $500 or $3,000 over asking to secure the deal. I have seen situations where the difference between the winner and loser was as tight at $500. If you are an agent, be sure to give your clients the comps and do not focus so much on the list price or discount off of list.
2. Move fast! There are multiple offers on the table. Be sure to move quickly and communicate with the other party. Keep the deal alive, do not give up easy.
3. Do not lose out because of silly terms. Keep your offer clean, offer a quick close and a solid deposit; Show the other party that you mean business and you intend to close. However, I always hold firm on the inspection period. If we cannot have time to inspect and verify that the house is in acceptable condition, I always suggest that we move on.
4. Forget about the other offer but offer like it is your final offer: This really is key, If there are other offers on the table and the property is a great deal, be sure to come in with your final and hold firm. The time for going back and forth with the seller is over. Be sure to make an offer that you are completely comfortable with. Look at the comps again, base it on real data and not the other offer. The other offer could be really good or really bad.
5. Keep everything positive: This can be a very stressfull time but the fact is, if we do not get this deal, there will be another one around the corner. In many cases, we do not get the first deal and sometimes the second deal ends up being better than the first. The focus should be on taking care of your client. If the multiple offer frenzy creates a bad deal, I advise the client to back off and find a different deal. If you do this, you will have a client for life. If you take good care of people, the closings will come.
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30A Foreclosures and Short Sales
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