Multiple offer situations can be very frustrating for buyers. Imagine finally finding your dream home only to find out that someone beat you to it with a better offer. Multiple offer situations are becoming pretty common in today’s real estate market. There are a lot of buyers out there and the housing inventory is low. When you are in a multiple offer situation, there are some ways to make your offer stronger. Here are 4 strategies you can use to beat out your competition.
Pricing
Sellers are looking to get as much money as they can for their home, so the highest price offer is guaranteed to get their attention. The more money you offer, the greater the chances of you winning the home! Consult with your realtor to see what similar homes are selling for in your area. Then, think about how what you think the home is worth, and offer as much money as you see fit.
Loan Type
As important as pricing is, there are other factors that sellers look at. A second strategy to consider is the type of loan, or financing, that you are using. Some loans look better to sellers when compared to others. For instance, sellers like conventional loans over FHA loans because FHA loans require that the home pass an FHA inspection. If you use a conventional loan, the seller doesn’t have to worry about that. When making your offer, you need to consider what type of loan you are using. If you are using a loan that sellers do not prefer, you will need to make your offer more appealing in other ways (such as price).
Write a Letter
If you want to stand out from the competition, write a letter to the sellers! Tell the sellers about who you are and why you fell in love with their home. If you are able to make a connection with the seller through your letter, they make take a longer look at your offer. I have actually seen a buyer win a multiple offer situation with a letter, so it doesn’t hurt to try!
Favorable sales terms
A seller’s biggest fear is to enter into a contract with a buyer, only for a buyer to cancel the contract a few weeks later, wasting the seller’s time. Also, a seller wants a smooth transaction with minimal work. As a buyer, you should appeal to the seller by catering to what the seller wants. For instance, is the seller doesn’t want to do any work, offer to buy the home as is, and do not ask the seller to make any repairs. If the seller needs time to find another home, offer to give the seller that time. Take as much pressure off the seller as possible in order to make your offer stand out. While price is important, the seller will likely choose a smooth transaction over an offer that is worth a little more but will be frustrating and risky.
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