What To Do In a Multiple Offer Situation
Posted by Capital City Group on
How to Win Multiple Offers
While there’s never a guarantee that you will win in a multiple offer situation, there are many tips and tricks you can use to give yourself the best chance at coming away with the home you want.
Know Your Limits
Before you start the house hunting process, and especially in a hot market, you need to know what you can afford. Make sure you have already been to a mortgage broker, and have been pre-approved. NOT just pre-qualified. There’s a huge difference. Getting a bank’s pre-approval means you are ready to go financially and know what the top end dollar is that you can spend.
Put your best foot forward
The advice of “You never get a second chance to make a first impression” couldn’t be truer than when you’re competing with others for a house. This isn’t just financial, this is for every aspect of the offer.
Since you already know what the bank will lend you, you come from a position of financial strength. This doesn’t mean you have to offer the very top end of what you’re able to spend, but it means you can go into the offer knowing that when it’s accepted, your bank isn’t going to deny it.
They may seem insignificant at the time, but they could mean the world to the seller. Remember, they are selling for a reason. It could be that they’ve already bought a place and need the dates to coincide, they haven’t bought a place yet and need more time to look, or maybe they’re being transferred out of town and would prefer a quicker close. Either way, having your REALTOR® find this information out ahead of time can make or break the deal.
You may want every single appliance, window covering, bar stool, and hey, why not ask for their china cabinet as well? What’s the worst they could do, say no?
Actually, the worst they could do is go with another offer.
A key thing to remember when buying a house, whether it’s multiple offers or not, is that you’re buying the house. People form emotional attachments to items. They could have been a gift, a special purchase, or they just may want them for their new home. By adding in a lot of inclusions, you are risking them driving the price up due to the emotional attachment, or them saying no altogether and going with someone else’s offer instead. There’s no need to risk a $500,000 purchase over a $200 item.
It’s rare that you will go into an offer completely unconditional, but given the right circumstances and planning, it can happen.
Financing 100% in order… Check. Read all the charges on the title… Check. Read the Property Disclosure Statement… Check. Nothing about the house that will scare an insurance agent… Check.
That leaves the Inspection. The inspection is really the thing that can tie up a deal for a few days or a week. If you know this is the house you want, and you know you’re going to be facing multiple offers, going into it without an Inspection clause can be the tipping point between you getting it or not.
Unless you have a background in construction, I’m not suggesting to forego an inspection. Having an inspector that will do an inspection for you before the sellers accept offers will do nothing but help you.
You will go into the offer either A) knowing that the house is sound and you can spend more on the purchase price, or B) knowing that there’s work to be done and can tailor your offer accordingly.
Most sellers are aware that if something major comes up in an inspection (termites, foundation issue, etc.) that they may have to renegotiate the price. Being made aware of a major issue before offers come in also means they are bound to tell the other prospective purchasers.
Sellers like to know that the home they have lived in for years is going to go to someone else that will look after it as they did. Being proactive and ahead of the game gives sellers a good feeling about you and it could be the thing that tips the scales in your favour.
These are just some of the ways to beat the rest of the pack in a multiple offer situation. Give us a call and we’ll help you get the home you’re after.