Buying a home in a seller's multiple offer market winning strategies is probably as important in my selling area, Livingston County Mi homes for sale, as it is in any part of the country where the market is "hot." Strong buyer agents are also good "third party negotiators."
The temptation for sellers is to overprice and get an under appraisal which means "no sale." For Buyers in multiple offer situations the temptations are to under bid, thinking that the seller can always counter. Then another more savvy buyer slips in gets it because they have a strong first offer. Their agent has probably prepared them to be a strong buyer.
Buyer Agents can help avoid failed offers by doing some preliminary thinking and educating about winning strategies with their client. After all, a strong buyer agent has to keep the end in mind. Preparing the buyer is key to that.
- Inform your buyer client about what is going on in the market. Spend a few minutes showing some statistics and graphs. Educate them but don't scare them.
- Probe your buyer's resources. A good strategy for minimum down buyers is to see if they have some "other resources" in the wings, eg., 401s, parents or grandparent gift, or even a parent that has strong credit to purchase as a second home. (Check with lender for details)
- Give your buyer an assignment. "We are in a competitive market, when we are seeing a house you really feel is calling you and it is one you really like, tell me while we are there. We are going to spend a little more time and make a visual inspection inside and out side of the house. Then write great notes for questions to ask the listing agent. Save these notes.
- If your client is making an offer in a hot market, remember less is more. The fewer conditions and a strong offer may even knock out other offers before the bidding starts.
- Seller Concessions: In multiple offer situations, consider what the seller is looking at. Mostly it will be the bottom line with the fewest conditions.
So, to improve your chances of winning the bid, be clear on what kind of market you are in, give your very best offer first, make a careful list of any visual defects that concern you, be financially prepared to cover the extras that often are asked of the seller. You are not going to win them all but increasing your chances when you ask less and offer more.