How To Win in a Multiple Offer Situations without paying more!
Minneapolis, MN: Multiple offers on homes just days on the market appears to be back, especially for homes priced under $200,000.
In a multiple offer situation, the offer price is probably one of the biggest factors when the seller is deciding which offers to entertain or accept.
But what do you do when you’ve reached your affordable max and can’t really come up any more in price?
Here are just a few things that I recommend to my buyers. Some requires a little investigative work, but it may pay off for you.
1. First, be sure to be fully pre-approved with an approval letter from a rock solid local lender with a great reputation that real estate agents trust. This is almost never an internet lender or the big banks.
2. Find out where the seller is moving to, and what logistics are involved with that – Is is the case where and when they’re moving may cause them need a short rent-back from you? In other words, after the close of escrow, it may help if they stayed in the home anywhere up to 30 days in which they can pay you based on your P.I.T.I. (Principle, Interest, Taxes, Insurance) calculated on a daily rate, or if you’re in a financial position to do so, offer them a free rent-back period. A good example is when the seller’s new home is not quite ready to move into and they need just a small amount of time. Offering the seller a rent-back is HUGE when it comes to these situations. No seller really wants to have to go into temporary housing and have to move twice!
3. Do the sellers have any pets that for whatever reason will be difficult for them to take to their new home? Once again, if you’re in a position to do so, offer to adopt the pet. Or perhaps there is someone you know that may want to adopt the pet. This is a major relief when a problem arises for those sellers that are moving to an environment where the little guys may not have as friendly and safe of an environment. And since the pet is already accustomed to that home, there shouldn’t be too much of a transition for the pet other than getting used to their new owners. Something like this can truly set you apart from the other buyers tremendously.
4. Write a fast inspection period into the contract – Get your inspection done within three-days and have the contingency removed from the contract. Why? It shows the seller you’re willing to get your due diligence done quickly and efficiently. That can score quite a few points with both the seller and listing agent.
5. Offer to inherit personal property that would be difficult to move – Is there any personal property that is large or difficult to move that would create a huge cost factor for the seller? Offer to keep the personal property or purchase the personal property depending on what type it is. Maybe there are some old paint cans or bricks/boards, etc. on the property. This can save the seller a lot of money not having to pay to move items that could create a substantial moving expense.
6. Write a personal letter to the seller that you’ve found you have a connection with – Do you and the seller both have children? Pets? Belong to the same organizations / clubs / charity? Share the same spiritual beliefs? Taste in architecture? Perhaps you share similar life experiences? Writing a personal letter to the seller that is sincere and makes some kind of connection or that creates some kind of bond with them can be HUGE in their decision to choose a buyer in a multiple offer situation. From personal experience, this helped me win the home I am in today!
The best advice I can give a buyer is: BE A STRAIGHT SHOOTER AND WEAR YOUR HEART ON YOUR SLEEVE. Don’t be crafty or coy. It never works and you’ll always create an environment of mistrust and animosity, and that’s a recipe for disaster.