How to Win a Multiple Offer Situation

If you’re a buyer in Houston, there is always the possibility that you might find yourself in a situation where you aren’t the only buyer interested in a home. Some homes are priced competitively to create a bidding war. Other homes are simply incredible homes during a time of high demand and low supply. Maybe you’re a buyer in the price range of $250-$350K, which is the most popular price range, and you have competition. Whatever the reason you find yourself in this pickle, I am certain you are curious how to win a multiple offer situation. The honest truth is that there is no guaranteed way to win, but here are some ways to improve your offer and increase your odds of winning.

Offer More Money

Most of the time, in a multiple offer situation, it is going to come down to money. Nearly all sellers want to get the highest price for their home, and they will usually go with the highest offer.

Waive Concessions and Fees

All the little fees in a transaction add up, and they affect the bottom line. If you don’t need closing cost assistance, and you can afford to pay for items such as the home warranty, survey, and title policy, these are areas where you can improve your offer. Removing these little fees will make your net offer better anywhere from $2,000 to $5,000.

Speed Things Up

Offer an earlier close date if your lender can process your loan faster. Shorten the option period if you can get an inspector out quickly. While speeding up the process isn’t as attractive as money, it might meet an unknown need of the seller.

Offer A Lease-Back

Some sellers need to sell quickly to finance their next home, but they’re not in a position to move just yet (for example, the seller is building a new home.) You can make your offer more attractive by offering a lease-back up to 60 days where they can rent the home from you after closing.

Write a Letter

I’m sure a few listing agents wish I didn’t suggest this, but I find that it often works. Writing a letter to the seller about your love for the home and your future in it can go a long way. You are now a real person that loves their home just like they do, instead of one of the many pieces of paper with a dollar amount they have received.  The trick to this letter is that it has to be sincere, and keep in mind that it isn’t necessarily a solution to an insanely low offer.

Find Out What The Seller Needs

I feel that this is the most important thing you can do. It doesn’t matter how many of the above items you do to improve your offer if they don’t meet the seller’s needs. You can’t talk to the seller directly, but you can make sure that your real estate agent has taken the time to contact the listing agent and inquire if the seller has any specific needs or requests. Knowing exactly what a seller may need is key to presenting an attractive offer.

Are you ready to buy a home?! Excited about the prospect but a little nervous about the process. Contact me for your free consult. We’ll sit down over coffee, tea, or drinks and discuss the process. Have questions right now? Leave a comment below.