It’s a seller’s market. In-short, that means that we exist in a real estate market where there are more buyers wanting to purchase a home than there are listings available for those buyers to purchase. Therefore, sellers have the advantage. And given that their property is desirable and priced appropriately, home sellers often have a plethora of offers from hungry buyers to choose from.
We are here to help and make sure you WIN your dream home!
Multiple Offer Situations/Competitive Offer Situations
Home buyers are discovering that having to compete for the home they want is nearly inevitable. Have you ever seen your dream home come on the market, only to see that 48 hours later it’s “Pending” online? That’s what a seller’s market is like, folks. Listings go active on Thursday or Friday, and by Sunday afternoon, they’re good as gone. Multiple buyers and their Realtors slug it out in a war of offers, but only one will emerge the victor.
So Is It A Bad Time To Buy?
Not at all. In fact, with interest rates at historic lows, some could argue that this is the best opportunity to get exactly what you want for a payment you can afford.
How Do You Win A Multiple Offer Situation?
Well, I’m glad you asked. Contrary to common belief, you don’t have to be made of money, drive a BMW, or wear a Rolex to beat the other buyers. All you need is a smart strategy.
#1 Appeal to The Seller’s Needs
Sometimes we get in our own way when we’re trying to win these things. We spend hours concocting the perfect offer. We write a quick closing date, offer to buy the survey and a 3 day option period. Then, we find out that we lost because the seller needed a 45-day close, a 3-day leaseback, and they had a survey in a drawer somewhere. We scared the seller off! We have to learn to be chameleons in these situations. If the seller’s situation is urgent, we’re the most urgent buyers on the planet. If the seller needs some time to move, we’re the most patient buyers on the face of the planet. The real secret here is this… You have to ask the selling party what works best for them, and craft your offer from there.
#2 Your Offer Was Written Poorly
You need someone who knows how to write a winning contract, someone who knows how every section and paragraph affects each party, and how to craft that document in your favor. In a multiple offer situation, there are plenty of opportunities, but only a couple rules. Rule #1: Don’t be greedy. That seller doesn’t know you. All they know is what’s on your offer. If it’s a competitive offer situation, it’s a competition! Which brings us to Rule #2: Don’t ask for anything stupid. A $500 home warranty that isn’t worth the paper it’s printed on could be the difference between you winning, or the next guy in line taking the gold. Offer wisely.
#3 You’re Not Using A Reputable Lender
I know. I know. The commercials you’ve heard on the radio about these mortgage companies that have the greatest deals on Earth that no one could possibly compete with are very enticing! Unfortunately, a lot of these institutions are more gimmick than substance. There are plenty of local, knowledgeable, and helpful lenders in your area that your real estate professional can recommend to you. I can’t tell you who not to use, but don’t get blinded by the lenders who want to Quicken your mortgage process like a Rocket, or the mysterious big Bank in America that will Chase you for your business all the way to Fargo… Hint Hint.
#4 Agent Competence/Reputation
I’m going to let you in on a trade secret… Getting a real estate license is remarkably easy, almost too easy. In fact, no matter where in the United States you’re sitting right now, statistically, there are 7 real estate agents within a 2 mile radius of you. The reason this tends to be a problem is that buyers will often find a nice guy or gal with the word Realtor® on their business card, and they entrust that person with one of the biggest decisions of their life, because they think that guy or gal is a professional. That’s not always the case. And even if you remain blissfully unaware that your agent is full of hot air, rest assured, the other agents in the market will know. Nothing’s worse than having your offer tabled because the listing agent doesn’t recommend his/her clients work with you and your agent! Take my advice. Look up your agent’s testimonials online. It could save you a lot of grief down the road.
#5 Your Offer Has No Emotional Appeal
Selling a house, moving, relocating, and everything similar is emotional. To a seller, your offer is nothing but a bunch of letters, numbers, and checkboxes on paper. Sometimes, you just don’t have enough financial PUNCH to beat your competitors with money alone. But what if you could tug at the seller’s heart strings a bit? You can. Before your agent submits your offer, write a personal letter. Include a photo of your family, complement the homes, talk about seeing yourself living and growing there, relate to them, and if all else fails, flatter them. Put your ego aside for this activity. Your dream home is on the line!