8 Tips On How to Compete With Multiple Offers

HGTV recently shared a wonderful post on their blog: ‘Competing with Multiple Offers: Five Key Tips’ by Sarah Daniels.

It was such a great post, I decided to reference it in my June 2nd e-newsletter and curate the post here for our blog.

The HGTV post starts out…

In a sellers’ market, which is what we are currently experiencing, buyers can find themselves in competition with other buyers to purchase a home.

Good news for the seller, not so good news for the buyer.

Sometimes, a property is in such high demand because of its size, features or location that it warrants multiple offers.

And getting the highest price for your home brings out different tactics.

There are times for example, where

“homeowners strategize with their real estate agent to under-price a property in order to generate a lot of interest and ultimately create a bidding war. The seller often chooses to consider offers on a certain date, in a time frame that works for them. This allows the property owner, in conjunction with their agent, to hold open houses on the weekend so that many prospective buyers can see the home at once, and then they deal with the offers several days later. “

Some buyers decide to present an offer via their agent before the indicated date. The hope is that the seller will consider your offer without seeing any other offers that may come forward on that date.

This is known as a bully offer and is usually pretty enticing for the seller offering a great price and fewer conditions. But bully offers are risky and you may end up paying an unnecessary premium for the property or worse choosing a property that needs repairs that might have appeared in a home inspection.

Even then, you and your real estate agent may find yourselves in a bidding war.

Logic can go out the window in a bidding war!

And when it comes to bidding wars, and I’ve been through a few, it seems that logic goes completely out the window.

In the HGTV article, Sarah Daniels outlined 5 excellent tips for every buyer to feel in-control of the situation and ride out a multiple offer situation.

I added a couple of points myself.

1. Make sure your home financing is secure.
2. Make sure the property title is in order. If you know in advance there aren’t any easements or rights-of-way that exist, it’s one less “subject” you have to include on your offer. Fewer subjects make more appealing offers to sellers.
3. If you can, do an advance home inspection .The buyer could consider your offer more readily, if it doesn’t include a “subject to inspection” clause.
4. Work with your agent and to assess the competition. Are you competing against one family or a dozen? This will help you gain perspective on the situation.
5. Establish the price you are willing to pay and just how much you want the home, so you make an offer you feel confident about. Then if you lose the home by a mere $1000 you won’t agonize over it afterwards.

And I would like to add:

1. Make sure you get everything in writing. Oral agreements have no effect on your offer to purchase which is a written, binding contract when the seller signs and you meet all of the terms and conditions.
2. Hire an experienced real estate agent who is also a member of a team. That way you are not only drawing on years of experience, and getting the best possible advice but you can be sure there is always a back-up.
3. Do your own homework and ask good questions of your realtor. Make sure you know and understand their marketing plan and how they interact in a seller’s market.

Buying and selling your home should be an enjoyable experience. It’s one of the biggest decisions in your lifetime and most people only make it once or twice.

So, take the time to make sure you’ve got your ducks-in-a-row and experience on your side.

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.