When multiple offers are received on a home, it causes excitement for the seller; However, when you’re the buyer it can be stressful, cause frustration and anxiety. Even the greatest real estate agent can’t guarantee you will hit the bull’s eye but agents are a reliable source of information and can help you through this journey.
Most would think the highest bid wins but it doesn’t guarantee the win as there are many factors the sellers consider during the process. There are ways to make your offer more attractive to the seller. 5 tips to help your offer look the best.
- Are you Pre-Approved – Fast & Easy Process! Getting Pre-Approved these days can normally be done completely online and receive a response with within 24 hours. A letter from your lender tells the seller you are serious about buying their home and you have the necessary credit & income to qualify for a mortgage.
- Contingencies – Keep to a minimum! Contingencies can include anything from asking the seller to pay some or all of the closing cost, to make repairs or the buyer having to sell their home. An offer with no contingencies will definitely draw the seller to your offer.
- Build a Relationship – Be Personal! Write a personal letter to the seller telling them how much love their home and why you want your family to live. Include a picture so the seller can see a face with the offer.
- Flexibility – Makes everyone enjoy the transaction! You may be able to offer the seller a flexible closing date, depending on each situation. For instance, you can allow the seller extra time to move out of the home or if it’s vacant you may offer to close earlier.
- Escalation Clause – Put a cap on it! An escalation clause is a contract addendum that will raise your offer by a specific amount and up to a specific amount. For instance, you offer $150,000 and include an escalation clause to increase your offer by $2,000 up to a certain amount, like $180,000. An escalation clause ensures you are always the top bid up to the highest amount you’re willing to pay.
The seller often includes all factors not just the highest dollar amount. Most sellers are emotionally attached to their home, even though it’s on the market. They want the easiest transaction and to know the buyer is going to care for their home just as much as they did. These are just a few things to keep in mind when making an offer on a house with multiple offers to give you the best chance of winning.