Limited Inventory Brings Multiple Offers...
Bringing to light a recent post from Debbie Reynolds who made some great points on a very real "Real Estate Market" and Multiple Offer Situations. With limited inventory buyers are often vying for the same property as others are. Being able to have the best offer possible takes planning and this is a great guideline for any buyer in today's real estate market.
Strategies to Make Sure Your Offer Shines in a Multiple Offer Situation
Aggressive markets with low inventory create stress not only buyers but for agents, too. Nobody likes to see a buyer disappointed when their offer lost out to another bidder.
Though there are no guarantees and each market responds to different practices, this list of tips and strategies is from some of the best agents in the country that participated in a recent ActiveRain Contest on how to compete in a Hot Market. Using these tips will give you a leg up and help stack the deck in your favor by increasing the chances the offer will get a serious look and possible acceptance.
1. First, buyers need to understand up front that the market is hot and if they don't bid quickly and aggressively they may not get a second chance on any home.
2. Choose an agent that is experienced that will represent your interests. Every buyer needs a strong negotiator on his side.
3. The buyer's agent should have a good reputation for working with other agents. When competing with other similar offers, it may come down to which agent the seller and his agent trust more.
4. Be proactive. Buyers that wait to look on the weekends are often told the property sold earlier in the week.
5.Get your finances in order and have a strong pre-approval letter from a trusted lender ready and in hand.
6. Cash is king and if at all possible making this happen will move you to the topof the pile.
7. If you see it and like it, don't sleep on it. Those that wait lose out. Do it now.
8. Before writing the offer, the agent should talk with the seller's agent and see what the trigger points might be. It could be a quick closing is needed or a seller rent-back if the seller is building a home. Try to make it easy on the seller.
9. Considering offering over list price. Many homes are going thousands over list and buyers that understand that they only have one shot are getting the homes.
10. Keep the offer clean with as few contingencies as possible. Even a home inspection is a contingency so make it for informational purposes only if you can and you will get the seller's attention. Be sure you are comfortable with the possible outcome if there are repairs you did not foresee.
11. An offer subject to appraisal or loan contingencies may be a put off to the seller. If you have the cash, considering covering the difference if the appraisal does not meet the sale price.
12. When writing the offer make certain you have the paperwork, contract, addenda and all disclosures are completed correctly and in their entireties. This will show you are meaning business and not playing games.
13. If the property is in an HOA, review HOA rules and restrictions to be sure you are comfortable with them and ready to move forward.
14. A buyer letter stating how much you like the home can make a good impression on the seller. Selling homes is an emotional and financial decision and some sellers could be swayed by some kind words. Caution: This could backfire in some situations such as if a buyer states he has pets and the seller has been meticulous about caring for his home and thinks the pets might destroy it. Use good sense.
15. A photo of the buyer or a drawing of the new home by the buyer children will set your offer apart.
16. Call the agent to notify that an offer is on the way. This is another place that having good working relationships can help your offer get serious attention.
17. Some agents make a request to present the buyer's offer to the seller. This is when you can clearly state the case for the buyer and test the waters about it being understood or if there ae questions.
18. Consider using an escalation clause that has predetermined price increases should other offers come into play.
19. Strong earnest money conveys a solid message that the buyer is financially committed to the home and will likely not be bailing on the deal.
20. If possible, get an agreement that the seller response time will be quick. Showing urgency can show strength in being able to move forward fast.
21. K.I.S.S. Keep It Simple Sweetie- the less complicated the offer is the more the seller and his agent will like it.
An experienced agent can determine which of these strategies should come into play. To read more from experienced agents on this subject that excelled in giving strategies and earned bonus points in the Hot Market Contest, click on the following links.
Hot Market Tips- How to Get your Offer Accepted by Kasey & John Boles
Winning the Bidding War- No Contest- No Contest by John Marshall - FORE!
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