1. Be Ready to Offer NOW
· We always say in real estate “time is of the essence”. But in multiple offer situations TIME REALLY IS EVERYTHING. So we help our buyers prepare ahead of time. Before we even start the process of looking. We make sure you are ready. We walk you through the steps to get ready. From proof of funds to pre-approvals with the “right” lender to guiding you through each step.
· First, what are your circumstances do you have a home to sell? Is it in contract and all the paperwork ready? If not, we help you get it under contract before we start looking at homes. WHY? Because it is simply no fun to watch one home after another slip through your fingers.
· Sellers are rarely taking offer’s contingent on the sale of a home that isn’t already under contract or even listed. It is just too much risk in our Market today, and can lead to a domino effect … Going out to purchase a home before this is like the old cliché of putting the cart before the horse.. you aren’t going to go anywhere if that is where the funds are coming to purchase the new home.
· If you really don’t want to “list” your home before purchasing a new one, then we can help you with available options. We connect you up with a good lender to talk to, so you can find out if you qualify to own both homes. Maybe you can get a bridge loan or a line of credit where you pull funds from your existing home to purchase the new home. There are options.
2. Knowledge is power
· The Seller holds all the cards. To get the keys to the kingdom (a.k.a. your potential dream home). We help you to learn the most important thing to the seller. Is it the money, is it the closing time frame. Is it not having to do any repairs.. or is it to take on their current tenant?
· Closing date preference? Post-closing possession if they’ve lived there for many years? As-is condition if it’s worth it to your clients?
· We work on knowing the market and gathering information about the property for you as well.
· How many multiple offers are there..
· If there are only two, you might get the property at list price but If there are more, someone is going to go well over asking price, so you need to also.
· Most bidding wars are won on price, so be the best price is important, but so are terms so let’s talk about that next.
3. Learn how to win on terms
· Keep offer’s simple and clean.. what that means..
· None of us like losing out on offers over and over again. One of the most important keys is how an offer is structured.
· When you are going to be in a multiple offer situation it is not the time for asking for closing cost credits – sellers get worried the buyers cannot really afford the home. Down payments are important point that a seller always looks at.. can this buyer afford my home?
· We don’t recommend asking for any “extras” in a multiple offer situation.. they didn’t include the washer and dryer.. don’t ask for it.
· Also, nix home warranties. We can always ask for one at home inspection or allow buy one on our own instead of losing a home over a couple hundred dollars warranty..
· Sellers look at the earnest money and look at whether you are able to release that money after the inspection period is up.
· Down payment – type of loan, or cash – all are important factors.
· Terms that say to the seller we are guaranteed to close.
· Offer more than the asking price, let the seller pick the closing date, provide ample earnest money, and say something positive about minimal repair issues and anything else that you learn that the seller wants.
· You can Put a short time for acceptance of the offer.
· Before the seller receives any other offers, write up an offer that fulfills all the sellers’ dreams.
4. Use an escalation clause
· If the asking price is $300,000 and there are 4 offers, an escalation offer would start at asking price and escalate , for example, “Buyer will increase the sales price $5,000 over any other legitimate offer, up to a maximum price of $335,000.”
5. Lastly like I mentioned in the beginning WE TEAM UP
· We’re negotiating 24/7 nowadays.
· We all have our family so we work together as a team so that we back each other up to help you.
· We know right now even a day can cost you the home you were hoping for.
Truthfully, sometimes you will do everything in your power, but fate intervenes and you’ll lose that home. That’s okay, you can’t win them all. It was someone else’s turn. Just remember to heed any lessons you learned, pick yourself up, and refer to this list next time. We’ve all had our confidence shaken, but don’t let it get you down for long. Onto the next: Bigger and better home! You’ve got this!