So, you’ve found the house you’ve been searching for in this tight market and you’re about to jump into a multiple offer situation….or maybe you’ve lost a house in multiple offers? Want to know how to get your house and leave those other buyers to fend for their second choice home?
Answer is easy. Think like a seller. A seller gets word that an offer is coming. Sure, they wonder what kind of money you will offer, but they also wonder things like “Are they gonna kill me on the home inspection?” “What if I can’t be moved out in time?” “What if their financing falls apart?” Well, it is a good thing that most of the contract covers such things!!
Sounds good, huh? And all this time you have been thinking like a buyer and that it is like an auction where price is the only factor.
There are many elements to working a deal.
Most sellers don’t do more than $1000 worth of repairs and most buyers walk away if the place needs a whole lot of work. Try offering to have the house inspected, but you won’t be asking the seller to do any repairs. You will take it or leave it. They love that because they don’t have to worry about accepting your price and then wondering how much of it they will have to give back in repairs. And think about it, if you really love the house, would $1000 worth of repairs make YOU walk away? If not, then this plan will work for you!
Possession is also a biggie. When every other buyer is going to go a little over the asking price, how about offering the seller a few days after the closing to vacate? Or let them pick the closing date if you can. Again, this makes it easy for them to say yes to you. Often, convenience trumps a little extra cash. Somebody both buying and selling might love to have a few days to move out or coordinate their two closing dates. If it works for you, offer it!
Sellers worry about missing buyers while you do your loan. In the old days, savvy agents would get a pre-approval letter for exactly the contract amount. Back then, it worked to keep the seller from thinking you could pay more……but everybody today knows that trick. Now, with lending being so tight, I like to show that a buyer can purchase MORE house than they are buying. Somebody who is preapproved for $300k and is buying a $250k house is somebody you don’t have to worry about getting to the closing table. It will be an easy loan and will ease the sellers mind.
The key is to find out what is important to the seller and make it easy for them if you can be flexible on such things. I bought my current house in multiple offers. I knew that I would be competing with some cash buyers. I bought my house “As-Is” and let the sellers pick the closing date. I beat out a full price cash offer plus 2 other offers by making it easy for the seller to say yes to me.
Just think outside the box and do what needs to be done.
Hope this helps somebody……off to show 3 houses across town now 🙂