Multiple offer situations are nothing new around here. You have probably heard about them quite a bit from friends that have bought or sold real estate in the last couple of years. With supply being so low right now, the best homes have the most people running after them. So what do you do when you find yourself in this scenario? How can you put your best offer out there to win the deal?
1. Make your offer as clean as possible – Often times, buyers want to ask for certain things in their offer. It could be a termite bond, a home warranty, a refrigerator, a washer and dryer, etc. My advice to clients when we are going up against other buyers is to ask for as little as possible (at the beginning). If a seller has said they are not leaving the refrigerator, don’t ask for it. If the seller is not already offering a one year home warranty, don’t ask for it. These are all things that can be negotiated later on in the deal AFTER you win in multiple offers. For instance, after the home inspection, you can ask the seller to provide you a home warranty then, or rather than repairing a few items ask them to leave the refrigerator.
2. No due diligence period – This may seem scary to think about. If you believe you have found the home of your dreams (that 10 other people also think is the home of their dreams) then you have to take some risk. The Peters Company has had a few buyers in the last couple of weeks offer ZERO days of due diligence with a Right to Request Repairs Exhibit. What does this mean? This means that you still have a home inspection done and you are still able to ask the seller to address any major defects. It’s a way to show the seller how serious of a buyer you are. It shows them that you are not going to walk away for any reason, like you could if you were in a due diligence period.
3. How much do I offer – This is the biggest question I get when my clients know they are going up against other buyers. It’s a great question and, honestly, can be a difficult one to answer. We typically don’t know what the other offers are that have been received by the listing agent. The best piece of advice I can give to buyers is to go as high as they feel comfortable going and where they won’t look back (if they lose) and think “I would have paid $X more to get it”.
There are, of course, other ways to help you win and that’s what we here are for! We are your advocates and we will fight hard for you to win the home of your dreams!
Written by Shiloh Sadoti, Buyer Specialist, The Peters Company