Tips for Homebuyers in Multiple Offer Situations: Part 2
When you’re up against multiple offers, there are a few things you can adjust in your own offer to make sure that you stand out.
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When you make an offer, there are many different ways that you can adjust the strength of the offer. The big one is, of course, the sales price, but it’s not the only thing you can do to make your offer stand out from the competition.If you do raise your offer price, you can ask the seller to pay some closing costs in order to reduce the amount of cash that you have to bring to the closing table, making things a little easier for you.When it comes to contingency periods in your offer, sellers generally prefer them to be shorter. Instead of asking for seven days for your option period, ask for four or five days. The same holds true for the financing period. If you’ve already been pre-approved and your lender is confident in your ability to close, ask for seven or 10 days for credit approval instead of the customary three weeks.If the seller needs a little more time to move out of the home or find their next house, you can offer a leaseback. This gives the seller some time to stay in the house post-closing, allowing them more time to pack up and move out.Ultimately, it’s important to consider the seller’s situation and adjust your offer accordingly. For example, if you are buying a house through an estate sale, it doesn’t matter if you write a nice letter; that transaction is being handled by lawyers, and all they care about is the final net price. The same goes for a foreclosure deal—you just have to send in the right number.If you are buying in this current market, then you need to make your offer as strong as possible because you will likely end up competing against multiple offers. Keep in mind that sellers want to know where the money is coming from; can you make a cash offer or put 20% down? The more cash you have behind the offer, the more confident the seller is that you’ll be able to close.Finally, one common strategy in multiple offer situations is writing a personal letter to the seller. Talk about what you like about that particular house and how living there will impact you and your family. As your agent, we can reach out to the seller’s agent and create a personal connection there, which will also set your offer apart.Of course, there are other things you can do to make sure your offer stands out. If you have any other questions about buying a home in our current market, give me a call or send me an email. I would be happy to help you!