If you’ve been out looking at houses, you don’t need us to tell you the market is competitive right now. Low inventory and high demand over the past couple of years has pushed prices higher and created a challenging environment for buyers who often find themselves in a multiple offer situation, with five, ten, or even more buyers all bidding for the same property.
When you are faced with this type of situation it can be frustrating, challenging, and a downright emotional process, but the good news is there are a couple of things you can do to increase your chances of winning that multiple offer situation.
Tip #1 - Find out the Seller’s Needs
Price and a buyer’s financing are crucial, there are other ways you can make your offer stand out above others. For example, when our BHURDinUtah clients are participants in a multiple-offer situation, we make a call to the seller’s agents to find out what, other than price, is truly important to the sellers. When do they want to close? Do they need to rent the house back? Do they need extra time to move? Being able to meet additional terms gives you an edge over other buyers that can work in your favor.
Tip #2 - Put Your Best Foot Forward
In a multiple-offer situation, it’s absolutely crucial to work with a trusted, experienced real estate professional who knows the market well and has a proven negotiation strategy for multiple-offer situations.
If you know or you suspect that you will be going into a multiple-offer situation, you must come in strong with your best offer from the very beginning. You might not get another chance! The seller wants to know that you, the buyer, are serious about buying the property, you have the ability to meet the terms, and you will ultimately close the sale.
Tip #3 - Establish the Relationship
In a multiple offer situation, your real estate agent has a chance to shine. He or she should be communicating frequently with the seller’s agent and building a relationship of trust. The seller and the seller’s agent should have confidence in working with you and your agent. Your lender can also build a relationship by communicating with the seller’s agent and answering any questions the seller may have.
As the buyer, you can build a relationship of trust by writing a letter about you or your family and why you love the house. Many times our homes are the setting of our favorite family memories and for a seller letting go can be hard. Many times it’s important to sellers to know that whoever is buying their home will love and enjoy it the way they did. Providing some information about yourself and why you love their home can give the seller peace of mind that you are serious about buying the house and serious about taking care of it.
Tip #4 - Try the Escalation Clause
You can put an offer in and with that offer a contract saying, “I will pay X price for this home, but if the seller receives another offer that is higher than mine, I’m willing to increase my offer by Y amount.” This shows the seller immediately how far you are willing to go to secure the home.
The last tip we would give you is to try to stay positive! It can be disappointing to lose out on a multiple offer situation, but working with a professional can make the process seem less daunting. If you are looking to buy in the near future, give one of our BHURDinUtah agents a call today. We’d love to talk to you about your options and set you on a plan that will help you accomplish your homeownership goals.