We received 20 offers in one day - tips to help you win from a listing agents perspective.
Winning in a Multiple Offer Situation can be a daunting endeavor but I learned a lot from the experience. As an agent I usually represent buyers in a market which has now become a seller's market. I understand the frustrations facing both agents and buyers. Last week I had the opportunity to represent the Seller on a very desirable listing. As a matter of fact while I was posting the listing, before I could even download the photo's, I received two calls.
By the second day we received twenty offers! Following are tips which may help buyers and agents in multiple offer situations.
First a cover letter should be submitted with your offer. You want to make it as easy as possible for the Listing Agent to find the information she/he needs. The cover letter should include the purchase amount, type of loan, down payment and the amount of the earnest money deposit. Specifically include the items requested under the agent remarks. A pre-approval letter and proof of funds are standard requests in our area.
For the warm and fuzzy types (agents and/or sellers) a little background on the client is helpful. As we narrowed down our list of offers the seller wanted to know who would be living in her home. Was it a family with children? Or perhaps it was an empty-nester family downsizing or in some cases an investor planning to rent the home after closing escrow.
Secondly a well written offer is important. Completed correctly it immediately notifies the Listing Agent they will be working with an experienced professional. If you as the buyer's agent are not able to correctly complete the Purchase Agreement that may signify trouble ahead. Now is not the time to make careless mistakes. We received an offer which had two different purchase amounts - one on the cover letter and another on the purchase agreement - a $40,000 difference.
Third it is important for buyer's to submit the highest and best offer, you may only have one shot at the property you have been dreaming about. The highest and best is not simply the purchase price it includes the request for concessions, warranties and termite work. When I presented the 20 offers to the seller I had a spread sheet which included the above information. When written on one document, you are able to compare the pros and cons quickly.
A "clean offer", one without request for concessions, may even win over a cash offer. So do not be afraid to bid. With the help of an experienced Realtor you maybe the one winning in a multiple offer situation.