As the local real estate market in Massachusetts heats up, it not unusual for home buyers to be in a Multiple Offer situation. If you find yourself in a multiple offer situation, at best it is frustrating and many times all reason goes out the window. As home sale inventory dries up, it may be impossible for you to avoid competing with other home buyers. Here are 5 tips to make your bid the winning bid!
5 Tips to be the Bid the Winning Bid in a Multiple Offer Situations
1) Get your financing in order- The biggest fear that a seller has is to take their home off the market for a buyer, only to have the deal fall apart because of financing. Most pre-approval letters are as good as the paper they are written on. Work with your real estate agent and get a GOOD pre-approval. What is a good pre-approval? It is one where the mortgage originator has looked at your bank statements, tax returns, paycheck stubs and has pulled a tri-merge credit report. There pre-approval will usually state they have verified income, assets and credit. If you only gave a verbal statement of income and assets and have not provided documentation, your pre-approval is not a good one.
2) Work with an experienced buyers agent- An experienced buyers agent will help you pull the pieces together to make the best possible offer you can in a multiple offer situation. I have been in many multiple offer situations and have been the winning offer with my clients. Do I win everyone? No, of course not, but I have years of experience in negotiating and an understanding of the market.
3) Understand what the fair market value is of the home your bidding on- The listing price means nothing. A savvy agent knows that listing a home right at market or just below market will generate multiple offers. When you create buyer competition it usually benefits the seller financially. I have worked with buyers and we have looked at comparable properties that have sold and determined the property is slightly under priced, yet the buyer still will offer a significant amount of money off fair market value hoping to get a deal, only o be disappointed. This strategy may work when your the only offeror, but will only lead to failure in a multiple offer situation.
4) Come in with your best offer- Don’t try to lowball in a multiple offer situation. Come in with your best offer. Show the seller you are serious. Many buyers are under the notion hat a seller will come back with highest and best offer, but has not always true. Sometimes the seller will only do that with two or three of the best offers or they will just go with the best offer right away. There are no rules or laws of how a seller will act, if you are serious about the home pu your best foot forward.
5) Make your offer clean- Help your seller focus on he strengths of your offer. Keep out any contingencies you don’t absolutely need. Absolutely keep out personal items, you don’t know how a seller will act. I recently had multiple offers on a property. There were two similar offers but one had asked for curtains that were not offered anywhere as part of the sale. The curtains were made by a family member that had passed away and the seller had a personal connection with he curtains. The seller was so offended they automatically discounted that offer and went with the other offer. Don’t forget sellers are running the same gambit of emotions as you. Selling a home is as stressful and emotional as it is to buy a home.
If you have found the perfect home, just because you may be caught up in multiple offers, don’t shy away. Put your best foot forward. Realize that sometimes all common sense goes out the window and you may not get the home. But, if you do the right things, you just may!
This post, 5 Tips to be the Bid the Winning Bid in a Multiple Offer Situations, was written and provided by Kevin Vitali of EXIT Group One Real Estate. If you are looking for buyer representation in Essex or Northern Middlesex County call Kevin at 978-360-0422.