Multiple Offers How Does A Buyer Win?

By
Real Estate Agent with Keller Williams The Woodlands

 

Multiple Offers How Does A Buyer Win?

The Woodlands and Spring Real Estate Market is in a buying frenzy with many properties receiving multiple offers the day they are listed. Housing inventory has not been this low since 2005, so what does this mean to a buyer? In a shifting market there are a few key questions.  How does a buyer’s offer become the winning offer? What should a buyer expect when preparing to make an offer?

First, expect stiff buyer competition when dealing with multiply offers. With low home inventory, the homes in the best location, condition and price will go fast and furious. Some will be sold even before they are listed. So what do I do to get the home I want?

First, be prepared and ready to make an offer. It is mandatory as a buyer; you get pre-qualified by a lender.  A pre-qualification letter puts you in a stronger position to make an offer quickly and have it accepted.

Secondly, prioritize your wants and needs. With low inventory you may have to compromise on your wish list, but make sure your agent understands what you want vs. what you have to have in a home. I have my buyer clients tell me the three things they cannot live without, that makes the list very specific and in a tight market you have to have your nose to the ground to find the right home.

Lastly, in a buyers’ market, you have the luxury of thinking about it and wanting to come in with an offer you hope to negotiate. In the current sellers’ market, you may not have that choice. I am not saying make a hasty decision, but I am saying while you think on it for a few days, someone else bought your dream home. Also, the days of putting in a below market offer will get you nowhere in a multiple offer situation. With home prices climbing, Sellers are asking top dollar and in most cases getting it.

One more thing to consider, if you find the home you just can’t live without and want to possibly sway the seller’s decision. Write a note to the seller telling them why the property is perfect for your family. Buying and selling a home is an emotional experience and knowing that a home someone is selling will be loved when they are gone is very important to some sellers. It works! I have happy clients to prove it.

Looking to buy or sell in The Woodlands or Spring, then contact Tina Brickhouse Keller Williams The Woodlands to discuss all your options.

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Comments (5)

Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

It's not easy to get an offer accepted these days. It really helps when buyers understand what they are up against.

Apr 22, 2013 06:09 AM
Margaret Goss
@Properties - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

It's a very tight market here with the same scenario.  I think writing a letter to the sellers is a good idea and it's also worked for me.  Particularly if no one else does it.

Apr 22, 2013 06:10 AM
Adrian Willanger
206 909-7536 AdrianWillanger-broker.com - Seattle, WA
Profit from my two decades of experience

Tina-we are experienced much of the same in the Seattle area, with inventory levels extremely low it really does favor the sellers. 

Apr 22, 2013 06:25 AM
Ann Griffin
Coldwell Banker Trails and Paths Premier Properties - Mesa, AZ
Realtor, ABR, E-PRO, SRES in Mesa, AZ

Tina, congratulations on your first post; I'm a newbie in Active Rain too.

I'd just like to add that you can enhance your buyers' chances of getting accepted in a multiple bid situation  with an escalator clause. If your MLS doesn't have one in its supply of forms, they go something like this:

"John and Susan Smith will pay $1000 more than the competing offer for this property, up to a maxiumum price of $210,000. Seller must provide a complete copy of the competing offer."  

Check with your broker for specific guidelines to escalator clauses in your area.

Another thing I've run into, where the property may not appraise at the level of all the competing bids, is to have the buyer offer (if they are financially able) a certain amount such as $1000 above the appraised value, if the property appraises for less than or equal to the agreed upon purchase price. This obviously won't work if there are cash buyers who don't care about appraisals, and it won't work if the seller is stubbornly oblivious to appraisal issues, but if it can help anyone in even one negotation, hey, run with it!

Apr 22, 2013 07:37 AM
Greg Steffens
Mountain Country Realty - Lake Arrowhead, CA

Welcome to Active Rain and congrats on your first post.  Be sure to spend some time looking around at what and how others are blogging here - it is a great education and lots of fun.  Looks like you’re off to a great start…keep it up!

Apr 22, 2013 03:50 PM