So if multiple offers are the best situation for a seller to be in, what happens if you’re the buyer and you find yourself in this situation? Don’t worry, we can help you with that, too. As the buyer, you may not have any idea how many other offers you are ultimately competing with or what the other potential buyers have set as their highest priority. This can put you in a position of uncertainty when trying to come up with your best offer.
So in these situations, the way to “win” is to make your offer as clean as possible. What does this mean? Make sure that all disclosures are signed, all the details are covered and available, and make sure you have your financing letters submitted with the offer. This will indicate to the sellers that you are serious about this bid and it will eliminate any uncertainty from them about your candidacy as a buyer or the details of your offer.
Usually the most successful bids either offer the most money down initially or remove any finance contingencies. Depending on the seller’s priorities and situation, either one of these things might make an offer the most attractive one. As a result, price does not always win. A seller may prefer to take a lower price if they are assured that the buyer is sound and flexible with a move-in date, for instance. If a house needs work, signing as “as/is” rider may also make an offer the most attractive to a seller — this rider indicates that you will take the property without requiring any contingent work by the seller. Of course this does not preclude you from doing a home inspection for health and safety issues, and if any major problems are found, you would still have the option of asking the seller to lower the price or backing out of the deal. And finally, don’t underestimate the power of a flexible closing date; if you can be flexible to the seller’s needs on this point, that can be a huge deciding factor for sellers who are concerned with convenience.
Basically, it’s important to think about how the seller is going to handle the situation of taking multiple offers. How many times is the seller is looking to negotiate? What is most important to them? Will they consider the offers individually in the order they are received or will it be a competitive bidding situation?
Once you’ve determined all of these factors and made your best offer, you have to be comfortable walking away. If the deal’s not right, don’t let the presence of other bidders force you into offering more than you are comfortable with. Don’t be afraid to move on and find a new property. And here at The Apostal Group, we are here to help you every step of the way!