As the real estate continues to pick up in many parts of the country, real estate agents from small towns to the big cities are blogging, tweeting, ranting and raving about multiple-offer situations.
But in some situations, there are more than six offers coming in over asking price. Depending on where you live, you, as a potential buyer, may be forced to compete with other buyers in a bidding war. Here are five steps you can take to beat the competition in a multiple-offer situation.
Hire a good local agent
In most communities, 80 percent of the business is done by 20 percent
of the agents. These agents are experienced in the local market and
have relationships with other agents as well as inspectors, contractors, mortgage brokers and appraisers. More than anything, these 20 percent of agents “get” it.
A seller is looking for a sure thing and a smooth, clean escrow.
With stakes high, who wouldn’t want a sure thing? In fact, the last
thing the seller (or their agent) wants is to enter into escrow with an
inexperienced or out-of-the-area agent.
That’s why, when faced with multiple offers, a seller, guided by
their agent, may choose to work with a lower-priced offer because that
buyer has a good agent. Many times, a lower priced offer will be
countered up to match the price of a buyer with an unknown agent.
Get your financial ducks in a row before making an offer
Before you can make a strong and winning offer, you need to have your finances in order. This means being pre-approved for a loan and staying in regular contact with your lender
or mortgage broker. Have an auto email alert set up from your real
estate agent’s MLS. Know the new listings as they hit the market and be
prepared to visit them right away. Be ready to make a move when the
right house comes along.
An informed buyer has been in the market for some time. They’ve seen
multiple properties, either at open houses or private appointments. They
come to the multiple-offer situation fully prepared, knowledgeable of
the market and ready to present themselves as a strong, motivated buyer.
The seller and their agent will appreciate that.
Don’t wait
Many times, a new listing is sold before the first open house. If a
desirable property hits the MLS on a Tuesday, you need to see it Tuesday
night or Wednesday morning. As agents tell sellers all the time, your first buyer is likely your best buyer.
The buyers who don’t rest on their laurels get the home. They show that
they are on it, they’re motivated and they really want the property.
This often translates into a successful deal or smooth escrow for the
seller and the listing agent.
If you’re serious about buying and have your financial ducks in a
row, don’t wait for the open house. As soon as you see the listing, let
your agent know you’re interested or have them start doing the research.
Make a ‘clean’ offer
There’s an assumption that the successful bidder simply pays the most
money. But this isn’t usually the case. While price is a huge factor,
the terms and conditions are as important, if not more so. To make your bid the most compelling, be as flexible as possible to
the seller’s needs. If you know the seller needs a quick escrow because
they just bought a place, give it to them. If they just had a baby and
need some extra time, go with a longer close or offer to close quickly
but give them a “rent-back.” If you’re going to have inspections, check
with the inspector and see if you can get an appointment soon after
getting your offer accepted. That way you can remove your inspection
contingency quicker.
The same holds true with an appraisal. If your lender is able to
pre-schedule an appraisal or at least check their schedule, it can only
help. The last thing a seller wants is to accept an offer, only to wait
14 or 21 days to discover the buyer can’t get a loan or the leaky roof
scared them away. Make your offer clean with swift timeframes for
contingencies. There have been times when a seller leaves 2 to 3 percent
on the table; just to be sure the deal will close “cleanly.”
Present yourself in the best possible light
Presentation can’t be emphasized enough. Make sure your agent
presents your offer to the seller in a professional way. The offer
should, when possible, be presented in person. A contract should be
typed, not handwritten. Without a doubt, a pre-approval letter from your
bank or broker should be attached to the offer. A cover letter from you
or your agent presenting you, as buyers, to the sellers should always
accompany your offer. If there are disclosures
presented to you prior to your making an offer, sign off on them. Make
it clear to the seller that you’re serious, motivated and ready to move
ahead should they choose to work with you.
Strong and clean is the way to go
It’s the common sense stuff that will help differentiate you from the
pack. Be up front, show that you’re motivated and look at the big
picture of your offer — not just the dollar amount.
Of course, many times the highest bidder wins. But every day, there
are dozens of buyers who kick themselves because they would have paid
the price that it took to win the bidding war. Presenting yourself and
your offer in the strongest and most clean way will go a long way to
assuring you come out on top.
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Are you ready to begin the home buying process? Give The Puffer Team a call, 828-771-2300. Feel free to also visit our website, www.homefinderasheville.com.
