Navigating the Multiple Offer Landscape: Seven Steps to Crafting Winning and Compelling Offers in a Seller's Market
/Anyone who has purchased a home recently can probably attest to the frenzied atmosphere propelling an overwhelming amount of buyers to compete for a limited amount of inventory. Back-to-back showings, multiple offers on one property, and sought-after properties going under contract within hours have become par for the course. So how does one actually get an offer accepted in a seller’s market? Here are a few ideas to help.
1. Set your expectations. With few exceptions, be prepared to offer the asking price or more for a property. ”Lowball “ offers will usually be dismissed first. If you are looking for a “deal”, consider homes that have been on the market awhile and may require repairs and/or updates.
2. No blind offers. Ensure that you view the property prior to submitting an offer. In this market, blind offers hold more risk for sellers and you want to do everything you can to remain competitive.
3. Make the offer as clean as possible. Try not to include anything that will require a seller to think twice. The more straightforward and the less you ask the seller to contribute, the better. Your realtor can advise you on items that may need to be included.
4. Don’t forget the preapproval. The listing agent needs to ensure you are preapproved, serious about closing the deal, and have the purchasing power to buy the home.
5. Make sure you review the paperwork to ensure everything is correct. You would hate for your offer not to be considered because of a typo or omission. Also, read the fine print on any listings and your agent should be reading the private remarks carefully.
6. Don’t forget to back-up! Back-up offers are often overlooked tools in this climate. A backup offer allows you to be the next offer in line should the original offer terminate for any reason.
7. Send a love letter. Include a letter to the seller indicating your interest in the property and introduce yourself to the seller. Hearing your story could convince a seller that you are invested in their property and will make it your home. Consult your realtor for specific laws and regulations governing this practice.
We understand that it may be challenging when you are competing with others for a limited amount of homes however, people are still buying homes and presenting winning offers. With a little motivation, creativity, and a positive outlook, you can craft an offer that gets you into your dream home.