Are You Losing in Multiple Offer Situations?
Take a step back and see what you could do differently when making an offer on a home. In my experience, the more offers there are on the table, you better be thinking of how much you want to offer OVER ask price. Yes, it hurts to pay over ask price as we all want a good deal. The truth is, sometimes the deal is that you are the accepted offer. And think of it this way – would you rather lose out on a deal over a few thousand dollars and start the whole home searching process all over again? It could take months to find the next home & you could possibly be in the same multiple offer situation again. This is something that many buyers painfully realize months later and then say “I wish I would have just paid $5K, $10K, $15K, etc over ask.”
Some other tips to making a strong offer include:
- Ask for as few things as possible in the contract. (Avoid asking for closing costs, termite letters, home warranties, etc.)
- If you are flexible on the actual close date or willing to rent back the home after close, let the seller know this. It could be helpful for the sellers depending on their situation.
- Reduce the number of contingency period days. This gives the seller more confidence that you will not back out or if you do back out of the contract, minimal time will be lost on marketing the home to potential buyers.
- Work with a lender that will get you not only pre-approved but also collect all your paperwork in advance so you can be already approved with an underwriter…this can allow for a quicker closing period which can be enticing for some sellers.
- If you think your offer price might be over the appraised value, offer to pay any appraisal difference in cash (if you are willing & can afford to). Or if you are confident the home will appraise, waive the appraisal contingency.
- Provide a substantial chunk of earnest money.
- Use an escalation clause (my favorite!) which states that you’ll beat any higher offer by $2,000 (or whatever amount you decide) up to a maximum purchase price you’re willing to pay.
There’s some more tricks in the bag depending on the scenario. Feel free to reach out to me and let’s talk about your house search and how we can get you into your new home!