How To Handle Multiple Offers When Buying a Home?

By
Real Estate Broker/Owner with Cam Realty and Property Management
https://activerain.com/droplet/4PLF

How To Handle Multiple Offers When Buying a Home?

As a home buyer, nothing could be more exciting than finding your dream home and having your Realtor write an offer on your behalf. Offer gets submitted along with your pre-qualification letter or a letter showing proof of funds if you’re paying cash.

You are confident the offer will get accepted and you can begin a new chapter. Just as you are making plans, your Realtor contacts you to let you know there are multiple offers on your dream home. What do you do? Your budget will not allow you to go beyond a certain limit. Inventory of homes within your criteria is very low and you’ve been looking for weeks if not months.

As a buyer in a multiple offer situation, there are steps you can take that would give you a better chance of getting your offer accepted!

Have a pre-approval letter NOT a pre-qualification letter. Sellers want to make sure you are indeed approved to purchase their home. Remember, you’re competing with other buyers who may very well have a pre-approval letter in hand.

Don’t Go Crazy with the Contingencies- Cut the inspection period, remove the appraisal contingency(if you can). You’ve probably heard the term “cash is king”, one of the main reasons is because cash buyers often do not have contingencies and can close quickly. Always consult your lender/mortgage broker on these terms.

Make Your Escrow Deposit an Attractive One- It would be easier to walk away from a $500.00 than $5000.00, don’t you think? Sellers would like to see you are serious about going forth with the purchase and would think twice before walking away.

Seller’s Concession- While it makes great financial sense to have the seller pay for your closing costs and pre-paids, sellers are looking to sell their home at the highest price possible, paying for the buyer’s closing costs doesn’t align with their goal.  

Offer Clean Terms on the Contract- Sometimes, terms of the contract can make a great difference to a seller. They might be looking for a quick closing or a ninety day closing, they may be really attached to their light fixtures and window coverings you put on the contract. It’s best for your Realtor to speak with the listing agent to find out seller’s motivation.

Have a heart-to-heart talk with your Realtor- We all LOVE to work with professionals who are pleasant to work with. Your Realtor who is representing you should put his/her best foot forward and be as professional and courteous as possible to the listing agent. Being difficult doesn’t benefit anyone.

As a buyer, it’s important to know how your local real estate market is performing, number of active listings within your price range, sold to list price ratio, terms, whether it’s a seller’s or a buyer’s market, if the home values are increasing before you even put an offer on a home. Once you find your home, have your Realtor do a market analysis which would show you what the fair market value of the home is. Educated buyers make sound decisions!

Lastly, regardless of what you think the house is worth, sold and active comps tell the real story. It’s important to keep in mind that in fast changing markets, active/pending listings are just as important as the sold ones.

How To Handle Multiple Offers When Buying a Home?






 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Winston Heverly 05/30/2016 10:14 PM
  2. Praful Thakkar 10/20/2016 01:09 AM
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Rainmaker
1,363,251
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Beth...you are so right here!

From a seller's perspective...they are likely going to get there price so it comes down to terms. Make your terms seller friendly! If you are financing be prepared to lose if you are going up against a cash buyer.

Mar 16, 2016 12:26 AM #27
Rainmaker
2,402,536
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

This young lady professional practices transparency a valuable asset to have

Mar 16, 2016 12:31 AM #28
Rainmaker
387,444
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

Beth, what a great list for Buyers to read and follow. In today's market it is essential to use a knowledgeable agent and take advantage of their experience.

Buyers who are wanting to live in Orlando would be well served by calling Beth.

Mar 16, 2016 12:41 AM #29
Rainer
73,303
Rochelle Kretchmar
GenEquity Mortgage - Lewisville, TX
Simply Irresistible Staging

In the Dallas market - this is so true.  It's all in the details as to whom is going to get their offer accepted.  Buyers agents really have their work cut out for them these days. Great Post!

Mar 16, 2016 12:44 AM #30
Rainmaker
679,819
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

The cleanest offer usually wins out. Even if there are other offers at a higher price sellers want as little hassle as possible on the way to the closing table. 

Mar 16, 2016 01:50 AM #31
Rainmaker
208,127
Joy Bender
Pacific Sotheby's - La Jolla, CA
#1 San Diego Luxury Real Estate Digital Marketer

Hi Beth Phenomenal advice for winning a home with multiple buyers involved.

Mar 16, 2016 01:53 AM #32
Rainmaker
131,339
Greg Kilroy
Keller Williams Sonoran Living - The Velocity Group - Paradise Valley, AZ
the Velocity Group

The best way to make your offer attractive to the Seller....ASK what is most important to them!! Sometimes, the Seller wants to see their house go to a family that will call it home for many years to come, sometimes they want the most certain offer, sometimes the highest price.

Mar 16, 2016 02:31 AM #33
Rainmaker
1,431,110
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Or "Cut the crap and put your best foot forward."  I agree, low seller stress (clean) offers with solid financing and big deposits.  However, I think 9 out of 10 times seller will go for a dicy offer if there is more money involved.  

Mar 16, 2016 02:51 AM #34
Rainer
465,407
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

An experienced local agent should already know if a property will attract multiple offers and prepare a strategy and consult with his buyers about submitting an offer that is likely to close. Sellers want to close, so be prepared to close fast.

Mar 16, 2016 02:57 AM #35
Rainmaker
1,557,915
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

I would recommend that the inspection contingency be kept on the table, but that buyer will not ask for any repairs.  If the property has too much to complete, they can revoke their offer, but take out the repair requests to sweeten the deal.

Mar 16, 2016 06:21 AM #36
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Such a great post and well deserving of the Feature Beth.....well done!

Mar 16, 2016 09:00 AM #37
Rainmaker
266,144
Dan Derito
Success! Real Estate - Brockton, MA

These are all great points to make Beth.  I don't recommend waiving the inspection, but will usually suggest not to make an issue out of nit picky stuff.  If there are big mechanical or structural defects be ready to walk away.

Mar 16, 2016 09:57 AM #38
Rainmaker
961,871
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great list of items to consider in a hectic real estate market!  This fits most anyone's market and I'm sure some will copy your list.  Great post!

Mar 16, 2016 01:32 PM #39
Ambassador
4,297,433
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Beth Atalay - nice tips for buyers on how to win the multiple offers.

I prefer that they still stick to the contingencies like inspection and mortgage/appraisal - unless that's the only home they love and want!

Mar 16, 2016 02:30 PM #40
Rainmaker
2,712,934
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

There's an ineffible quality in your gut that I feel like your can't messure! :) Love and light!

Mar 16, 2016 04:28 PM #41
Rainmaker
2,712,934
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Roger, I love your gold star! Makes me smile! Be well and happy and may your be having a golden star time! Roger D. Mucci 

Mar 16, 2016 04:31 PM #42
Rainmaker
3,181,081
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Beth -- it can be very frustrating for buyers in a seller's market but your tips are a good guideline for them to consider as they purchase a home where multiple offers are involved.  The only item I might add for buyer is be patient...it may take time but your goals can be accomplished.  

Mar 17, 2016 01:35 AM #43
Rainmaker
2,745,138
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Beth, And that is the way a true professional gets the job done for their buyer clients.  Make it clean and sweet! 

Mar 17, 2016 02:42 AM #44
Rainer
106,124
Dana Cottingame
Coldwell Banker Residential Brokerage - Dallas, TX

Totally agree with writing a clean offer and having your finances in line. I have also been successful writing a letter explaining who my clients are and why they like the house. In last years market, I asked the buyer to be sure and mention at least something about the house they really liked. Some offers were coming from people who hadn't even seen the house.

Mar 17, 2016 07:34 AM #45
Rainmaker
1,055,316
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Beth, this is excellent advice for buyers. Working with an experienced real estate professional who understands local real estate contracts makes a difference.

Mar 20, 2016 12:57 PM #46
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Rainmaker
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Beth Atalay

Cam Realty of Clermont FL
Sell or Buy Homes in Clermont FL
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