How to Win in A Multiple Offer Situation

If you’re currently looking for a house chances are you’ve noticed that the market is very competitive for buyers at the moment. We’re seeing our listings have 100+ showings and receive 10, 15 even 20+ offers. In a market like this you may be wondering how you can get into a house you can afford without overpaying or losing every offer.  Here is how I help my clients succeed in this market.

Networking

Having access to resources such as Edina Realty’s Network One means I know about upcoming properties first and can even get buyers into properties pre-list! I’m also tuned into sources for finding off-market and for sale by owner properties. This could mean less competition and your offer may be the first the seller sees! 

Being in the business as a third generation realtor with over 20 years of experience also means I know many of the seller's agents personally. Imagine there are two nearly identical offers on the table, they’re going to suggest that their clients go with your offer because they know my reputation to get the deal done.

The Purchase Agreement

In a sellers market writing the purchase agreement with the most favorable terms will set you ahead of other offers. We’ll work together to find out what you are comfortable with to make the best offer that we can. Some of the ways we can achieve that are waiving a contingency, tightening the inspection window or adding language such as “The buyer understands that the purpose of the inspection is to uncover major undisclosed defects in the home, and not to re-negotiate the purchase price.  Buyer may only elect to cancel based on the results of the inspection if the cost to repair all undisclosed material defects in the home exceed $__________.” We can also increase the amount of earnest money and be flexible on the closing date. I will always call the listing agent and inquire about what terms are most desirable to their seller.

Move Quickly

You can’t wait until you’re ready to write an offer to get everything straightened up. We’ll make sure your finances are in order, your loan officer is prepared, you understand all terms of the purchase agreement and we’re just about ready to pull the trigger so that when your dream home hits the market we can book a showing as soon as possible and move quickly on submitting an offer! Speed is of the essence.

Write a ‘love letter’ to the seller

Along with your purchase agreement we’ll send a ‘love letter’ to the seller. In the letter be ready to say why you love the home, neighborhood and a little about yourself and dreams for the home. This can make your offer more personal and persuade the seller to want to work with us over someone who didn’t write a letter. Many people have an emotional attachment to their homes and want to sell it to someone who will care for it!

Know your limits and keep spirits high

In a market such as this it is often inevitable for your first, second or even third offer to not be accepted no matter how strong it is. That’s alright! Keep your spirits high and remember your limits. Do not dramatically overpay for a property just to win. The right house at the right price for you will come around!