Multiple offers, multiple headaches

| Sunday, June 23rd, 2013 | 2 Comments »

1017430_511742935541061_2054525645_nBy now you’ve no doubt heard that this real estate market is as hot as the debate over Kim & Kanye’s baby name. Unless you’ve been living under a rock, you probably know someone or have heard about someone who has been a part of this crazy market. If they are a seller they’ve most likely had multiple offers on their home in a matter of days. If they are a buyer, they’ve probably had to try 3 or 4 times before their offer was accepted. What the heck is going on?

First of all, the inventory is still at an all time low. That means there are very few houses on the market so when a house gets listed, there’s a line of buyers waiting to make an offer. The interest rates have stayed relatively low so buyers don’t want to miss out on a chance to borrow money at historically low rates. In a nutshell it means being a seller is a lot more fun than being a buyer. So what do you do if you’re a buyer?

I’ve been extremely successful in helping my buyers win multiple offer situations. Here are some of my tricks. First, write a clean offer. Clean you ask? Yes, clean. That means make it as hard for the seller to say no to you as possible. A seller mostly looks at 3 things in an offer: price, closing date and buyer’s financing. Obviously the higher the price the better. Duh. Closing dates vary by seller so just ask them. Do they prefer a quick close or do they need time to find a new house, finish the school year or finally complete that 5000-piece jigsaw puzzle that’s been sitting on the dining room table since 1994? Lastly, what kind of financing does a buyer have and how much are they putting down? Some sellers like to see a big down payment, some like conventional financing and some really don’t care. So ask. When possible, try to tailor the offer to exactly what the seller is looking for.

Waive bye bye to your contingencies (yes, I spelled “waive” that way on purpose). When possible and appropriate, waive your contingencies. If you can do a pre-inspection so that your offer isn’t contingent on an inspection do it! That’s real popular with sellers. If you have extra cash lying and around and can make up the difference if the appraisal comes in lower than your offer, than waive your appraisal. This also makes sellers happy. These don’t always work for buyers but definitely make for a good offer in the seller’s eyes.

I can play this crazy game and once I know the seller’s needs, the buyer’s capabilities and how many offers we are competing with, I make a game plan. And I win. If you have been afraid of making an offer in this market because you don’t think you can compete, you need to be on my team. And by the way, Kim & Kanye’s baby name is North. And yes, that makes the full name North West.

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  1. hannah says:

    Am I the only one that likes the name North? I appreciate that talking celeb gossip in your comments is totally relevant to your industry posts. I like that about you, you know your audience. 🙂

    PS… In my defense, I do not like the name North with their last name. I have my standards.

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