Have you been noticing how fast the market has been moving lately? With available homes for sale in low inventory and buyers in large numbers it has created a home buying battlefield. This creates multiple-offer bidding wars as buyers are willing to do anything they can to win the seller’s attention and get their offer accepted. How can you come out victorious without losing leverage or your wallet in the transaction? Let’s discuss.
Once more in to the breech dear friends, once more.
- Henry V, Shakespeare
Here’s the typical situation. The perfect home comes on the market on a Thursday. It is in great condition and has been priced well. The phrase ‘turnkey’ gets said a lot. Even the homeowners association dues are reasonable. The open house over the weekend has 150 people through it in three short hours. Within a few days of being on the market there are over a dozen offers and yours is one of them.
How in the heck are you going to beat out 12 other offers and open escrow victorious?Other than the obvious and attention grabbing ‘over asking’ price there has to be more ways to stand out in the crowd. I’ve got some of those key differentiators right here.
Love is a battlefield.
- Pat Benatar
1. Work with a seasoned pro
One of the best things you can do as a homebuyer is to work with an experienced REALTOR® like me. With many transactions under my belt they can give you an inside edge. First things first there’s a pretty good chance I either know or have worked with the agent who is representing the seller. This can be a crucial ‘in’ to the whole process as agents do like knowing who they are going to be working with. In addition to that having many transactions under my belt I will be able to find the right mix of terms (which will discuss later) that make your offer one the seller can’t refuse.
2. Know your seller
Every seller is different. They have their own reasons and motivations for moving on. As your agent I can carefully extract those game changing factors you can include in your offer to make sure they take notice.
3. Terms of endearment
Yes, sometimes, maybe even most of the time, it is about the money for a seller. However, there are those opportune situations where a seller could be more swayed by the terms of the offer. Terms refer to things like length of escrow, when the seller has to move out, or possibly putting more money in the pot for the earnest money deposit. If your offer is the only one that is sensitive to the seller’s preferences you will definitely stand out from the crowd.
4. That escalated quickly
In a bidding war situation it can be very frustrating to lose out on your offer not being selected by a few thousand dollars and it happens all the time. I can protect you against this by writing in an escalation clause into your offer. Let’s say you offer $500,000 on a home and say you are willing to beat the highest offer by $5,000 up to $525,000. Should another offer come in at $505,000 your offer price jumps to $510,000 putting you in the lead. If things get crazy and offers come in higher than your maximum price so be it, but you definitely keep yourself in the running this way.
5. Don’t be a tease
A multiple-offer bidding war is not a time to play games. This is a time to write strong right out of the gate. The possibility of you getting an opportunity to back and forth with a seller is very slim when there are most likely going to be other buyers out there who are willing to do anything to get noticed. We will send a message that you are serious and financially qualified to close the deal as soon as possible with minimum contingencies.
6. Get personal
Finally, I will help you introduce yourself to the seller. On every offer I write a letter on behalf of my clients that adds a colorful touch to the black and white legalese in the offer. I attach a photo of your entire family, talk about what you do for work, and how you can see yourself enjoying the home when you move in. A majority of sellers want to know that the new buyer will honor their legacy, be a great addition to the neighborhood, and will care and appreciate the home they have loved. I’ve had a few situations where my clients weren’t the strongest offer on price, but the sellers selected them because they had a connection to my client and wanted them to have their home.
The battle lines are drawn
Should you wish to go to war and get those coveted keys in your hand, I’m here to bring peace of mind, creative strategy, and most of all a housewarming victory party that will be one for the history books.