We Received 20 offers in one day - tips to help you win!

By
Real Estate Agent with KB Home Bre # 01424127

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.house, rain clouds

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.

Posted by

 

If you are considering  buying or selling new construction in the Inland Empire ~ Give me call or email me 

Cause We Like Em' New!

 

Kristal Wilson                                           

cell: 951- 288-7079

Shoot for the moon & if you miss you'll be among the stars

 

 

Comments (7)

Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

kristal - great post. I just wrote about this very same thing the other day. I am surprised how many agents don't submit complete package and somehow think they can compete in a mulitple bid.  

Jul 24, 2012 10:03 AM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Hi Anna ~ sorry I missed your post it's been pretty busy out here! (yea!) It is very unprofessional on the agent's part, they are certainly not representing their clients to the best of their abilities.

Jul 24, 2012 10:50 AM
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Kristal,

Great tips for winning in a multiple offer scenario.  My sister just closed on her new house after competing with two other offers.  We used your 2nd and 3rd suggestions along with an escalation clause just for good measure.

Thanks for posting in Do Not Worry ~ Today group.  Featured post in Do Not Worry ~ TodayIt is Featured Post in the group.

Jul 27, 2012 10:57 AM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Mary ~ Thanks for the feature!

Jul 28, 2012 10:49 AM
Sara Woolford & Steve Golson, ALHS
iTexas Realty Co. - San Antonio, TX

Hi Kristal-

Ahh, the quick reference cover letter and a highest and best offer.  That's the way to get the Seller's attention in a competitive environment.

I give up. I enjoy your blog so much I have to subscribe!

--Sara in San Antonio

Aug 23, 2012 10:44 AM
Kristal Wilson
KB Home - Fontana, CA
Cause We Like 'Em New ~ New Home Specialist!

Well Sarah I think we have a lot in common I'll be subscribing to your blog also! Love to hear what's going on in San Antonio.

Aug 23, 2012 11:32 AM
Demarco & Marisa
Remax Kings Realty - Riverside, CA
"The Choice is Clear!"

Great and timely advice. And exactly right for this hot Riverside market! ~Marisa

Aug 23, 2012 12:59 PM