In today's real estate market, where the demand for luxury homes outstrips the supply, multiple offers on a single property have become the norm. As a buyer, this can be intimidating, but there are strategies you can employ to increase your chances of securing your dream home. Here's how to better present yourself as a buyer when facing competition from multiple offers.
Pre-Approval with a well-liked lender: In 2023, financing contingencies turn sellers completely OFF. More than the pre-approval letter itself, this gives you as a buyer another professional outside of your agent to speak confidently about you. Your lender will call the listing agent and let them know how well-qualified and prepared you are to make this purchase. I’m an agent so the seller knows, hey, those folks love to talk, but everyone loves and trusts the money, haha.
Flexible Timeline: Be open to the seller's preferred closing timeline. Flexibility can sway a seller to choose your offer over others.
Offer a Competitive Price: While you don't want to overpay, offering a competitive price is essential. Homes typically sell close to their appraised values, check out comps and come to the understanding that you won’t be paying any less than the previously sold homes. You won’t have an appraisal or financing contingency to back you up, be sure you’re confident at your price and happy with your home should you need to fill any deltas between sales price and appraised values.
Escalation Clause: “We heard that we are going to have to go above the list price, how does that work? We know you have to pay more than the highest bidder but how much more? By including an escalation clause in your offer, you protect yourself by stating that you're willing to outbid any competing offers up to a certain limit. This shows your determination to secure the property.
Fewer Contingencies: If you want to kick the tires, please go to your local Mercedes-Benz dealership, you might even leave with a free hat or yeti. If you; 're purchasing a home in a crowded market, the odds of someone being willing to take the property on in its current condition heighten. How do we protect ourselves? Pre-inspections to make sure we aren't stepping into anything we can't handle. Licensed contractors can be helpful to ensure your renovation dreams are consistent with real live building costs. I have seen most buyers increase their success by keeping the offer clean by minimizing contingencies. While inspections are important, try to limit other requests that could deter the seller.
Quick Response Time: Be ready to respond promptly to counteroffers or requests for additional information. This shows your commitment and responsiveness.
Stay Positive & Listen: Be prepared to hear exactly what the seller wants. The seller will reach out to ensure that they have the most solid deal. This is where the seller may tell you exactly what you need to do to win. We hear them out and decide if this is where we are headed, but if you are at this step, the ball is in your court.
In a competitive housing market, presenting yourself as a strong and committed buyer is essential to improve your chances of winning the bid and moving into your dream home.