We talked a bit about multiple offers last week – as the market continues to heat up this busy season multiple offers are becoming the norm. Nearly every offer written by Moscow Realty agents this past week has been in multiple offer competitive situations. We have seen up to seven offers on one property within a week of the property being on the market. This goes back to helping our buyers be ready to navigate the market and craft offers buyers feel good about that also meet the seller’s needs.
Sellers have several options when they receive multiple offers, they can accept the offer they like best, this may be based on price, timeline to close, cash vs. finance, or a combination of these and other factors. They can reject all but one offer (or hold them for a time) and counter one specific offer. Or they can reject all offers.
Buyers have more options to compete in these situations than they realize. You need an agent you trust to help prepare for this process and who brings your lender on board to leverage your position to be successful. Know your agent well enough to trust that when they say, we need to approach this with our highest and best offer, they mean it, it’s not a tactic to get you to offer more money. Work with your agent to evaluate each scenario as a buyer or a seller to determine how an offer meets your personal needs – the client is always the decision maker. Our goal is to help you get everything you need and some of what you want and wish for.
Commissions – Offering to pay these costs when a seller had planned to pay them may be a great incentive for the seller to choose your offer. Check with your accountant to see what buying expenses may be tax deductible.
Flexible Closing Dates – Your agent can do a bit of research to find out what works best for the seller. Do they need to move quickly or are they waiting for a specific event or date? Try to align as closely with that seller’s NEED as possible.
Money Talks – Need to finance? Be preapproved. Period. Do it. Call your lender today. What are your options for lending, ask about things like permanent or temporary buy downs, down payment options, adjustable rates… Talk with your lender about options, some of these approaches can save a buyer more overtime than they could ever save up front with a lower asking price allowing a more competitive offer price. Paying cash? Have your proof of funds ready to be submitted with your offer.
Appraisal – This may be an issue for those using a lender. If your purchase price is high enough that the more than the property doesn’t appraise for that amount, know what the options are as a buyer and as a seller and how this may affect the process and eventual sale.
No Regrets – When you choose your highest and best offer price, how will you feel if you lose the deal? If you know you will come away feeling like you gave it your best try perfect – no regrets. If you lose the deal and think I should have offered $x more – instant regret. Make sure your highest and best is truly your highest and best.
Contingencies – Have a house to sell? List it now. Home inspection? Your agent should have that pre-scheduled and let the seller’s agent know that when submitting the offer. Or is there a pre-inspection available that meets your needs?
These are just a few of the important considerations to talk with your agent and lender team about. Give your favorite Moscow Realty agent a call to talk more about your needs, wants, and wishes for buying or selling your home, and let us help craft a strategy that works best for you!