A seller receiving multiple offers on their home is in an advantageous situation. They know their property is desired and are in a position to weed out low-ball offers. And if you’re the buyer in this situation, we’re going to teach you how to make your offer competitive and ultimately win the bidding war.
A seller can handle multiple offers in several ways. One common approach is to ask the buyers to put their best offer on the table. Under this approach, you can merely outbid the competition. In this situation, you can risk overpaying for the house.
Here are a few other approaches to make your offer competitive without breaking the bank:
Judge Your Competition and Make a Close Offer
Outbidding the competition is one way to come out ahead. However, as we’ve discussed, paying well above the listing price means you may have paid more than the fair market value.
Should you choose to sell a few years down the line, this could come back to haunt you. If the market does not pick up or experiences a downturn, you are at risk of having negative equity in your home. This is when your mortgage balance is higher than your house is worth.
However, this doesn’t mean you can make an offer much lower than the rest of the field. In order for the seller to consider your offer, it needs to be within the playing field and comparable to other offers. Your exclusive buyer’s agent can advise you on the fair market value in order to minimize your risk.
Be Willing to Include Fewer Contingencies
Naturally, sellers do not like contingencies. Offers with fewer contingencies are better, from the seller’s perspective. For instance, a seller may forgo the highest offer if it is contingent on the buyer selling his or her home.
There are many standard contingencies that protect you, including a home inspection, appraisal, and mortgage contract. You should carefully consider your risks before you waive these rights.
Work with the Seller’s Timeline
Being willing to accommodate the seller’s timeframe may boost your chances of winning the home. A seller might want a quick close or a long escrow. Working with their schedule can have immense benefits.
Don’t Discount the Value of Kindness
People want this process to go smoothly. If sellers see you as confrontational or unnecessarily nitpicking over many little things, they may choose someone else. People that make negative comments about the home in the owner’s presence will not win any favors.
It is easy to smile and remain cordial. Pleasantness will go a long way, and the process does not have to take on an adversarial tone. In short, follow the Golden Rule.
Don’t Get Caught Up in the Race
Remember, above all, homebuying should be an exciting and enjoyable process, so don’t get too caught up in ‘winning the race’ and beating other buyers.
With that being said, a NAEBA realtor can put you in the best position possible to win your dream home. Review our list of exclusive buyer agents and get your homebuying process started today!