When The Home You Love Gets Multiple Offers, What To Do
April 28, 2021 | amandasearlerealtor
This market is on fire and it’s not anticipated to slow down any time soon. Many buyers are getting frustrated that homes are going under contract within hours of hitting the market and often with multiple offers. Here are a few tips to try and win out that situation and nail the home you love…
- Offer the seller a small due diligence period. Have 2 top inspectors in mind and book your inspection in advance (find out the cancellation policy) + if one of them is booked use the other.
- Offer to accept the property AS IS. Read over the Seller’s Disclosure, if one is provided, and be wiling to take it AS IS, with the exception of any repairs required by the lender, insurance company, or noted by the appraiser.
- Put down a larger binder if you can. The binder shows the seller that you are willing to have “skin” in the game. Offering a larger binder shows the seller that you are qualified and a serious purchaser.
- If you can afford it, offer to pay over appraised value up to $….
- Offer a quick closing. Discuss with your lender the shortest amount of time they can close in. Make sure to discuss it with your lender and get them anything they need as soon as possible to adhere to that deadline once under contract.
- Offer to pay some of the seller’s closing costs. This will allow the seller to keep more money in their pocket.
- Offer over asking price. This one can be tricky because ultimately the home has to appraise if you are getting a loan. If you can, offer to pay cash out of pocket over the asking price. If you can’t afford this, then a way to pay over asking price if it doesn’t appraise is to purchase at the appraised value and pay some of the seller’s closing costs.
- Use an escalatory addendum. This addendum states that you will pay X amount and then $1000 over any other offers that come in over that amount up to $_____. The property would also have to appraise but it’s a good way of not just offering a blanket amount over asking price.
- Make your offer quickly and make it your best. Don’t assume a seller will negotiate with you. Don’t assume a seller won’t get multiple offers. Don’t assume a seller call for highest and best from each buyer. Some sellers will look at the multiple offers in front of them and choose an offer without negotiating or asking all buyer to submit their highest and best offer.
Be willing to be creative: offer to pay 1 yr subscription of the seller’s Netflix, 30 free carwashes, name your first born after them, offer to hire a taco truck for 30 of their friends to assist in a moving party! LOL At the end of the day, be memorable, flexible, and put your best offer forward!