Are you wondering how to win in a multiple-offer situation? With the current state of the market, it is very likely that buyers will end up in this predicament. If you’re going to represent a buyer, you need to make sure you’re prepared to help them win. To help with this, I’m sharing my top five tips for winning when there are multiple offers:
1. Start with a solid buyer consultation. Make sure to set clear expectations with your buyer before they start the process. They need to know that there will likely be 10 to 20 other offers on a house, so they will need to put in extra things to win. They’ll likely need to offer above the list price, so they need to know that when they’re still just looking at houses.
2. Talk to the listing agent. Once you and your client have chosen a property to put an offer on, ask the listing agent the standard questions about the level of interest and how many other offers there have been. Then, ask them questions about the seller’s situation and preferences, like if they have a preferred closing date or if there is anything in the property that would be a burden to move and they want to leave it. Build a rapport with the agent by reaching out to them right away.
3. Be flexible with the inspection. One great way to minimize the negative impact on the seller is to say that the inspection will be for informational purposes only. After clearing this with your client, let the seller know that your buyer will not ask for a price reduction or repairs when the inspection comes up. Then the seller will feel more confident that you won’t try to squeeze every penny out of them afterward.
“This will help you stand apart from the rest.”
4. Use the escalation clause. Some agents don’t like this tool, and some sellers won’t accept it, but it might be worth trying because it can be very useful. In short, this is including language in your offer that says if any other buyer puts an offer on the property, you will exceed it by a certain amount, below your maximum. With this, I recommend including that you will receive a copy of the competing offer (with all of the personal information redacted) before this agreement is executed.
5. Include an appraisal guarantee. If your client has the ability to do this, consider including an agreement that says the buyer will cover the difference if an appraisal gap occurs and the appraised value is less than the agreed-upon price. They could cover part of the gap or all of it.
These five tactics will help you stand apart from the rest and increase your chances of getting your client’s offer accepted in a multiple-offer situation. If you have any questions about these tactics or need more help, don’t hesitate to reach out! You can call or email me anytime and I would be happy to hear from you.
