Summer is here, and Fall is right around the corner. Finally, the listing season is upon us. Would-be homebuyers are dealing with historically low inventory that’s making competition as fierce as ever.
In many cities, homes barely stay on the market a month before being snatched up.
Even if you’re not searching for a home in seller’s markets, you need to know how to get your offer accepted in a multiple-offer situation — and how to deal with the stress and frustration and stay resilient if your offer isn’t accepted.
Tips for Handling a Multiple-Offer Situation
Start with a Strong Offer
If you know — or even suspect — that you may not be the only person making an offer on a home, start with a strong initial offer. Many buyers come in with a low offer to set the ground for favorable future negotiation. You can put yourself ahead of the competition right off the bat by topping them.
Many sellers will only counter the best offers they receive. So even if you don’t have your offer accepted right away, you’ll ensure that you are included in a smaller pool of contenders.
Come Prepared and “Clean”
You don’t want to give the seller any reason to reject your offer. That means providing an offer package that is complete and as free of contingencies as possible. If you’re able to pay cash, obviously, that will put you ahead of much of the competition.
If you need financing, you can make your offer more appealing by offering to put more money down.
Most importantly, no matter what your offer includes, be sure it is complete! Don’t make the seller chase you down for signatures or paperwork.
Work with a Professional with Local Knowledge
You pay a professional to know what you don’t know. Real estate agents do this for a living. They know if homes in a particular area sell above or below asking prices and what similar properties are selling for. Having a local professional by your side can make all the difference in a multiple-offer situation.
Empathize with the Seller’s Needs
This may sound counter-intuitive. After all, it’s you against the seller. Right? Not so.
By knowing what the seller is looking for, you can put together the most attractive offer by empathizing with them. For example, are price and financing really the seller’s number one motivators? Or are they looking to close quickly because they’ve already closed on a new home?
Build a relationship with them. Work with them.
Avoid a Bidding War
When you’re convinced that you’ve found your dream home, it’s easy to get dragged into a bidding war. Please don’t do it.
This is where working with a professional with local knowledge becomes really valuable. They can provide unbiased advice and help you avoid offering more than the home is worth. Buyer’s remorse in real estate is a real (and unfortunately common) occurrence.
There’s always more fish in the sea!
Lastly, but not least, stay positive! Easier said than done, of course. It’s completely normal for buyers to miss out on their first couple of offers before they get one accepted. Enjoy the process!
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