Multiple offers on a property occur frequently. So how do you win when there are multiple offers on a property? Depending on whether it is a buyers market or a seller’s market your approach may differ.
When there is little inventory of properties available on the market, this is referred to as a seller’s market. This is a huge benefit to sellers as quite often they will receive many offers which may lead to a bidding war. The seller typically will receive well over asking price as potential buyers try to out bide one another.
A buyers market occurs when there is an influx of inventory of properties for sale on the market. This type of market benefits buyers as quite often many properties have been on the market for longer periods of time as opposed to a seller’s market and buyers can present offers that are much lower than the asking price.
Tips To Better Your Odds When in a Multiple Offer Situation In a Sellers Market
If you are a buyer that becomes involved in a multiple offer situation when it is a seller’s market there are a few things that can be done to better your chances. Here are a few tips that may help you.
- Let the seller know you are serious
- Obtain Pre-approval for a mortgage prior to placing the offer
- Be flexible with your closing date
- Reduce your conditions in the offer
- Present the best possible offer for your situation
*You can let the seller know you are serious about buying their home when you submit a large deposit with your offer. This will let the sellers know that you have no intention of backing out of the deal.
*When the seller knows you have already been pre-approved for a mortgage they will feel that you are a much stronger buyer and you may stand out from the other offers.
*Be flexible and accommodating with the closing date, this often can be one of the deciding factors when selling a home. This is especially true if the seller has already purchased another property with a set closing date.
*One of the best ways to heighten your chances of winning a multiple offer situation is to go in firm. This means not including any conditions in your offer. However, many people feel more comfortable with at least placing a condition of home inspection in their offer.
*In a seller’s market, you have to offer the highest price you are prepared to pay for the property. There is very little hope for any negotiating on the price. It is often suggested to offer over asking price to make it more attractive to the sellers.
Tips To Better Your Odds When in a Multiple Offer in a Buyers Market
In a buyers market, there is a large variety of inventory on the market. Typically, even when in a multiple offer situation, the price presented in offers is less than the asking price. This still falls true even when there are multiple offers. However, there are a few things buyers can do to better their chances of winning when in a multiple offer situation. Here are a few tips that may help you in becoming successful with your offer.
- Sell your existing house prior to making an offer. so you can eliminate the need to include it as a condition in your offer
- Don’t ask the seller for anything over and above the house, if appliances aren’t included don’t ask for them.
- Make sure your real estate agent has a good working rapport with the selling agent.
- See if your agent can find out from the selling agent what is key to the sellers when looking at offers such as the closing date.
- Let the seller know how much you love their home. Quite often the seller has some sort of emotional attachment to the home and would like the buyers to feel the same.
- Be prepared to counteroffer and remember the seller has the right to accept or refuse any offers. It is wise to have a plan B, in the event of a counteroffer.
- Avoid bidding wars at all costs. Some people just have a competitive personality and just want to win the bidding war. This can cause them to highly overpay and perhaps go beyond their means.
*When you sell your existing home prior to placing an offer, this tells the seller you are serious about buying and eliminates the need to include it as a condition of sale.
*When you ask for the seller to include items, not in the listing, this equates to money, so the seller will more than likely accept another offer which is not asking for anything over and above what is in the listing.
*When your buying agent has a good rapport with the selling agent, sometimes the selling agent can put in a good word for the buyer which may influence the acceptance of an offer.
*If your buying agent can find out important facts from the selling agent about what is important in an offer, it can greatly benefit the buyer.
*Write a note to the seller telling them how much you love their home and how well you would take care of it. Sometimes sellers feel better selling to someone that will have an emotional attachment to home just as the sellers do.
*Have a plan in place in the event the seller comes back with a counteroffer. Always remember to stay within the price you can afford.
*Avoid bidding wars when you are a buyer, you could end up overpaying for the property.
Other Helpful Tips When In a Multiple Offer Situation
Keep in mind that sometimes the terms and conditions of an offer to purchase can be just as or more important than the offer price. Your buying agent may be able to give you some insight.
Find out exactly how many offers you are up against. This can greatly affect the type of counteroffer you can present.