Fighting Multiple Offers on a House? Here's How to Win
Fighting multiple offers on a house can be a nightmare for buyers: It basically means
that you've found your dream home, but everyone else also wants it. Unless you go to
the mat and really play your cards right, this place could easily slip through your
fingers. That's why it's critical to put your best offer forward from the start. Here's a
guide on how to stand out amid multiple offers to increase the odds that you'll end up on
top.
Offer more money
It's that simple: Money talks! Many agents even suggest including an escalation clause
in which you agree to offer above the asking price (up to a limit, of course), if other
bidders come into the picture.
However, the sale price isn't the only place where you can make a strong financial
showing. Consider increasing the amount of money that you'll put into the escrow
deposit. Committing more money will show the sellers that you're serious about buying
the property.
To buyers who might balk at the cost, if you find out that you lost this home by one
dollar, how will you feel?"
Write a letter
Beyond the basic agreement of sale paperwork, including a letter explaining why you're
so passionate about buying the home can help you stand out from the crowd.
A quick biographical sketch of your buyerswhat made them fall in love with the home,
the neighborhood, or any other personal details that might help build empathy with the
seller.
Letters are especially effective in situations where the sellers have an emotional
connection to the property. For example, an elderly couple looking to downsize might be
more inclined to choose a young couple who are looking to start a family.
Keep financing clean
Where financing is concerned, buying a property with cash is always attractive to
sellers, if you can afford it. Since a mortgage lender won't have to get involved, the sale
process becomes much easier and there won't be any worry that a loan won't get
approved at the last minute. That being said, cash certainly isn't an option for every
buyer. If a mortgage is a must, make sure that you provide a pre-approval, so that the
sellers know a lender has already vetted your finances.
Providing either a pre-approval or proof of funds for a cash deal is a must. "Whether you
are planning to take out a mortgage or pay all cash, you can stand out from other offers
if you show you are a serious buyer by proving you have the funds to buy the home," he
explains.
Buy the home 'as is'
Agreeing to buy the home "as is" essentially means that you are agreeing to purchase
the home in its current condition and releasing the sellers from the responsibility of
making any repairs. It's a very attractive option from the sellers' point of view because it
increases their net profit.
Keep in mind that buying a home as is doesn't mean that you have to forgo inspections
entirely. It simply means that they will be for informational purposes only. You'd be
entitled to elect any inspections you wishand to walk away if major problems are
uncovered. However, regardless of what the reports show, any repairs will be your
responsibility.
Have your agent make a call
Your real estate agent's job is to make sure that your interests are communicated to the
sellers throughout the negotiation process.
In a scenario where you're competing against multiple offers having agents make two
calls: one before submitting the offer to ask what the sellers would like to see, and the
other after the fact to reiterate your interest. Agents can also ask to be informed if the
property goes back on the market after a deal falls through.