Those who have read my blog before know that I started out life as a REALTOR in the hot Washington DC market during the beginning of the sellers market in 2003.  I learned from my experience of writing up to 15 offers per client how to write one that would fetch the eye of the seller and would be one of the top contenders.  I would venture to say that most have never had that experience and so when presented with a multiple offer scenario, whether a hot property, an REO, or a steal; they shy away and advise their client not even bother.  That's not representing your client well and so I'll share with you my elements for a winning offer. 

Extraordinary Contingencies Gone!

When you're presenting an offer that is expected to compete with others, you should consider eliminating the things to you that don't matter.  Asking for a contingency for a home sale would be like a marathoner running while breathing only through a coffee stirrer...you won't get far.  Your timelines should be short and sweet.

• Pre-approval letter submitted with 10 days for loan committment
• Appraisal within 7 days
• All Inspections done within 3 days
• Insurance Affordability within 3 days
• Any feasibility done beforehand or done within 2 days
• Closing 30 days or less

You're conveying to the seller that should a problem arise with your offer, they can quickly move on to the next with little hassle since everyone will know where they stand within a week or two. 

Your Pre-Approval Matters

The Bob's loan and landscaping that promised you 100% financing on a 30 year fixed for 4% won't cut it.  Go to a real bank or mortgage bank and get yourself approved for a legitimate program.  If you choose to go the Bob route after its accepted is your choice but at least you've demonstrated that a real bank likes you too.  Also, most agents know that 95% of the pre-approvals that are submitted aren't worth the paper they are written on therefore go through the steps before shopping for a home for a full blown loan committment. 

A loan committment means you've handed over all the paperwork required to do the loan (1040's, W2, paystubs, bank statements) and the bank is essentially guaranting you a mortgage once you find a home.  The only thing stronger is cash.  Once you find the home you make an offer on, all the bank will have to do is appraise the home and you're done.  Submit that bad boy (make sure your agent knows what they're looking at too) and you'll blow the other guys away

Money isn't everything but it is the only thing

When you're in a multiple offer situation, take the comps and throw them away.  Essentially, they are absolutely worthless since you're not convincing the seller what you think the home is worth.  You're convincing them that they will make more money or have a smoother closing or are guaranteed a closing by chosing yours.  Myself, I look at the comps with my clients but I always ask my clients "at what price does your heart stop?"  At the heart of that question is the price you feel comfortable offering and if you got outbid, you'd be ok.  There's no formula, magic number or anything else besides that.  Some win by offering less and having a super offer otherwise because the seller was guaranteed a sale.  It's the buyers choice.   

Also, don't skimp on the Earnest Money.  Most transactions down here are done with as little as $100-$500 out of pocket for an EMD.  The amount you're willing to risk in an EMD strengthens the offer big time so consider putting up 1-2% of the asking price.  Ninety Nine times out of a hundred when a deal goes south, the buyer gets the money back without dispute.  Its the part where you've gone too far in the transaction or your agent forgot to do something where you get screwed.  Buyers, this is why experience in these things matters. 

Sell that offer!

As a listing agent, nothing makes me more upset than when I get an offer from some anonymus person that I've never spoken to before.  All of a sudden, the fax just starts churning with 15 pages of a shot-in-the-dark.  The only time I hear from them is when the seller went a different direction and they're mad. 

As a buyers agent, you need to pick up the phone beforehand and find out what are the sellers hot buttons and write to those.  When you're done, sell that bad boy on its merrits to the listing agent.  After all, they don't know your buyer and how great they are; they just see paperwork with numbers.  Don't hide the lowlights but emphasize the positives and how your clients are absolutely ready to move forward.  As a buyers agent, I'm going through every detail on the cover page and emphasizing the strengths of my client.  It's like proving to them we want it more and here's why. 

Now, you never know which direction the seller is going to go in a multiple offer situation.  Some will just take the highest dollar amount and hope for the best.  Others will consider the offers and take the one which is like having guaranteed cash.  So while there aren't any secrets, there's definately a method to the madness.

Sincerely;
Jonathan Osman
Charlotte NC Homes, Charlotte Real Estate