Preparing Yourself for a Multiple Offer Situation
Multiple offers can be intimidating, and many buyers loathe the idea of having to deal with competition when they’ve found the home they love. But in a hot sellers’ market, multiple offer situations often become a reality for home buyers and that’s why it’s important to be prepared for this possible eventuality. Here are some surefire tips to get you ready for a potential multiple offer situation so you know what actions to take to snag the home you deserve!
React Quickly: Keep up to date on listings in your area and be readily available to jump on any that pique your interest. It’s important to note that in a burgeoning sellers’ market, homes won’t last long and therefore it’s important to be the first to view and make an offer on a property right away. Acting quickly and not delaying on your offer will give you an advantage, hopefully before anyone else sees the home you love and decides to act also.
Get Pre-Approved: Getting pre-approved is extremely important leverage in a multiple offer situation and makes you a more appealing and reliable candidate in the eyes of sellers. The higher offer is not necessarily always the winner in a multiple offer scenario. Being pre-approved or not might very well be the deciding factor between yourself and another buyer and so by getting pre-approved you are likelier to wind up on the winning side.
Be Willing to Offer More: The strategy for sellers right now is to price their home below market value with the intention of generating a high-demand and interest from buyers and driving their home into a bidding war. That means as a buyer you need to offer aggressively and competitively. As a buyer under no circumstances should you be offering below asking price, and more than likely, your offer will have to at least meet asking price or above if you want to stand out against other buyers.
Less Contingencies: As a buyer you have the option to include several contingencies in your offer, but in the case of a bidding war, the more contingencies you have the less appealing your offer is to sellers. Waiving some of these contingencies may make your offer more desirable against other buyers. But be aware, by not including certain contingencies, for instance a home inspection, you are running the risk of unaddressed problems with the home arising in the future. It is up to you to determine how important obtaining this property is and what you are willing to sacrifice to make it yours.
Larger Deposit: Putting down a larger deposit is an added security for the sellers and shows them you are a reliable and serious buyer with the capability of obtaining the necessary financing when necessary.
Try a Personal Approach: If you really love a home and you are willing to reach out, write a personal letter to the sellers and explain what owning this home means to you and your family. Listing a home and saying goodbye can be exceedingly difficult for sellers. So this little personal touch is often appreciated and could potentially work in your favor. A seller might be more willing to work with a buyer they have connected with personally. If you don’t feel comfortable reaching out with a letter, there are still other steps you can take to appeal to sellers on a personal level. In addition to your agent presenting your offer in person, you should make yourself readily available to answer any seller concerns throughout the entire presentation process. Being reliable and open as well as putting a kind face behind the offer might make all the difference!
All this said, it’s most important to armor your offer with a qualified agent who will always have your best interest in mind and knows how to navigate a multiple offer situation and work the scenario in your favor. For more advice on how to come out on top, I’m here to help!