Here are three tips to help you win in a multiple-offer situation.
When you’re in a seller’s market like we are, it can be discouraging to go out and look for a home. You can easily find yourself and your offer going up against 15 or 20 other offers for a single listing. That can make you feel like giving up. However, don’t walk away from the real estate market just yet.
Usually, you should go ahead and write the offer because it’s not always the highest price that wins. If your real estate agent is easy to work with and the listing agent feels they’ll get the deal across the finish line, that can go a long way in getting your offer accepted. It’s always important to choose who you work with wisely.
Besides that, here are three additional ways to help you win in a multiple-offer situation:
1. Earnest money deposit. Increasing your earnest money deposit shows the seller that you’re serious about closing. All you’re doing is offering a little more money sooner rather than later. That speaks volumes when the seller is looking through multiple offers. Consider having the earnest money released to the seller early instead of sitting in an escrow account. This puts the earnest money in their pocket upfront instead of waiting until closing.
2. Give the seller flexibility to move. Things get hectic when buying and selling a home, so giving the seller a little more time to move out goes a long way. Sometimes the seller isn’t certain where they’ll be moving to, so they need time to find somewhere to go. Allowing them to rent back the home from you, the new owner, will raise your chances of winning in this market. It takes the pressure off the seller to find a new home in the short time before closing.
3. Start with your strongest and best offer. You want to make it attractive to the seller, which may mean offering above the listing price. Often, sellers purposely lower their listing price to get multiple offers on their homes. Also, using an escalation clause in your offer is a great idea. It will allow your offer to go as high as you’re comfortable with, but only if there is a competing offer.
Some real estate tricks and tactics can only be learned through experience. If you’d like my help in finding and securing a home or if you have any questions, feel free to reach out to me via phone or email. I would love to help you. Also, if there’s a topic or question you’d like me to address in the future, please let me know. I’d be glad to make a video about it.