Monday, May 22, 2017 / by Amy Paradysz
Competing in Multiple Offer Situations
The spring is known for being the busiest season in the real estate industry. 2017 has had our team putting the pedal to the metal as we find ourselves running around showing homes day and night. The real estate market is shifting, there are an abundance of buyers but not nearly enough home sellers. When homes are listed, the sellers are finding themselves in multiple-offer situations, sorting through the offers. This is GREAT for sellers when their house is priced accurately and is staged to be visually appealing, they are almost guaranteed a home sale in the first few days! However, this is not as great for buyers. Buyers find themselves in competing offer situations, over and over again they are are being beaten out of their offer – sometimes never leaving with an accepted offer.
In this market, simply submitting an offer at full asking price is not enough. When a buyer is in a multiple-offer situation, there are a few additional pushes that can be submitted with an offer.
1. Pre-offer Home Inspection
If you are serious about buying your dream home, and have a feeling this one could be the one, scheduling a home inspection prior to making the offer (you will have to move fast!) and can feel comfortable moving forward with waiving inspections, this will make your offer much more stronger vs offers with inspections elected. You could run the risk of incurring the cost of the home inspection, but if accepted, you would pay that expense anyway.
2. Money Talks
We all know this. Simply writing in the contract that you will deliver your earnest money deposit within the default 5 business days, at the typical first deposit amount $1,000 may not be enough. In addition, if you can put more money down in deposits such as $5,000 for your first deposit and more than the standard 3% of purchase price for the 2nd, this will make your offer stand out to the rest. Also, it is always a good idea for the buyer to include a copy of of the check when presenting the offer. When the seller reviews the offers, knowing that the first deposit check is in-hand and ready to submit can raise the bar higher over the other offers.
3. Bidding War
Competing offers in real estate is very similar to an art auction. The auctioneer is looking for the highest and best bidder without wasting any time. When submitting an offer on a house in a multiple-offer situation it is a good idea to include an escalation clause in the offer. This will allow for buyers to pay a certain dollar amount in intervals (usually $1,000) over the highest bid up to their highest and best offer without offering highest and best up front.
4. Get Personal
Sellers often have an attachment to the home they are selling. After all, they are selling the place where memories have been made. When competing in a multiple offer situation, writing a letter to the seller is a way to set your offer apart from the others. In the letter be sure to thank the sellers for making the home so inviting, explain why you loved it and how you know it is the perfect home for YOU.
If you would like more tips on how to get an offer accepted, give us a call! We are always happy to help!
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When you are ready to list your home, we can help. You will need a team of agents who will prospect daily for potential buyers, advertise your home effectively, show to prospective buyers, negotiate the purchase contract, approve financing, handle all of the marketing from listing to contract and all of the administrative paperwork from contract to close.
The Hardy Real Estate Group is your Real Estate Team. Our objective is to sell your home with the least amount of hassle at the highest price possible. By pricing your home accurately, we will position your home to sell dictated by the market. Your home will receive maximum exposure with our extensive marketing plan, including showcasing it to our own database of potential buyers.
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