While the current market favors the seller slightly less, it is still a sellers market. This means we’re still seeing multiple offer situations when the conditions are right. Inventory remains low, and quality inventory remains even lower. A move in condition property placed on the market at the right price will almost always lead to a multiple offer situation. And for most buyers, they get caught up in at least one before they find the home they eventually close on.
Strategy is Key in getting your offer accepted the first time. Here’s my 5 step strategy:
- Don’t play with Low Ball offers
The property of your dreams was just listed. We go out and see it in the first 48 hours on the market, and you want it! Even if there aren’t any offers at the time you see the property, they could come at any time. It’s usually a “where there’s one there’s many” effect. If the property is well priced write full asking price right off the bat. Better yet, write $1,000 over asking price to show the sellers you are serious and don’t want to mess around.
They will also be more likely to include things like, a home warranty if your offer shows serious intent.
- Write a personal letter
It seems silly, but it works almost every time. If a seller has two close offers, but one has a though-fully written letter from you about why you want to buy their house, their heart strings can’t turn you down. Even better, include a family picture!
- No Crazy Terms
Don’t muddy up your offer asking them to include their lawn mower or give you a $2000 paint allowance.
Write a clean and basic offer. You can always ask for a list of things they’re willing to seller later.
- Offer an escalation price
One way to win a multiple offer situation is to guarantee your offer is the highest by promising them a set amount above the highest offer. With $1000 being the most common escalation, get creative and offer the seller $1250 over the highest offer (with proof of course). We will make sure to cap it at a certain amount so you don’t get stuck over paying.
- Ease Their Appraisal Worries
In a sellers market where prices are still appreciating, the appraisal can always be a worry, especially in multiple offers situations when people are writing over the market value asking price. Give your self a leg up and fighting chance against the cash buyers with an appraisal guarantee. If your mortgage appraisal doesn’t come in at the full purchase price, offer to pay up to $2500 towards the difference (or another pre-set amount). Same as with #4, we always make sure there is a cap to protect you.
You have to have an aggressive agent who knows when to hold em and when to fold em! An experienced agent can feel out the sellers side and determine which option(s) give you your best shot at winning.
Ready to Start? Head over to my buying a home in Michigan page to let me know you’d like to get set up on a property search! Still researching? Here’s some popular home buying links;