Navigating a multiple offer situation

Prepping the Buyer

There is no rules or set guidelines to negotiating and handling a multiple offer situation. Depending on your area there can be many different rules that regulate multiple offer situations and how they are to be handled. It is not always about the price! There are sellers who care about time and convenience.  Today many real estate agents are tackling multiple offer situations and these types of situations are here to stay.

How you handle and negotiate multiple offers is up to the buyer but working with a professional can be a crucial factor in determining whether or not you will be winning a multiple offer situation. Winning a multiple offer situation begins with an agent strongly advising their buyers on how to put their best foot forward. There are many ways to make a strong offer but a strong agent works for you and tries to find all the possible pain points for the seller and then crafts an offer with their buyers that address those points.

Emotions run high when a home buyers offer is rejected. The majority of home buyers have preconceived notions of what a home seller should or should not do when it comes to multiple offers. Buyers should be fully aware of the importance of being competitive and strong on paper when trying to buy a home that will have offers coming in at the same time.

What agents are doing to get their offers noticed!

Escalation Clauses

Escalation and acceleration clauses are common practice and need to be used correctly. Buyers should address the potential competing offers’ price points.

Down Payment

When it comes to down payments, sellers are finding large down payments to be more attractive. This is because sellers feel this shows a stronger intent from the buyer and a smaller chance the buyer will walk away.

Financing versus cash

Most of the time sellers prefer cash over financed ones due to the fact that cash gets rid of the sellers need for an appraisal. Sometimes sellers will accept offers that require financing because the offer was higher in price. If a buyers is using financing to purchase the property it is important to address the buyers ability to purchase the property. Agents are including clauses that are clearly defined about the amount the buyer is willing to accept if the appraisal is low and they are disclosing how they will address this.

Inspection versus pre-inspection

Sellers are attracted to pre-inspections. Buyers will do a pre-inspection so they can go in with a clean offer and eliminate the worry of a seller thinking that an inspection might uncover something that coupe be problematic or damaging to the sale.

Title Review

Now a days buyers are waiving title review contingencies. This is so that the buyer can eliminate the possibility that the seller will not accept their offer because there is something that needs approval prior to the property selling.

Buyer Letters

If you choose to do a buyer letter you must be extremely careful because of the fair housing law. Some agents will present a letter from their buyer to the seller to try and give their client an emotional edge.

Buyer to clean house

When moving out of a home it must be left in at least the same condition as when you arrived. When it comes to making an offer agents are encouraging their buyers to put that they will have the home cleaned so the seller does not need to clean when moving in their clause. Some agents are even encouraging buyers to allow sellers to leave their garbage in the garage and the buyer will remove the trash. Both of these are extremely appealing points to sellers because it one less thing they will have to worry about when moving out.

Buyer to allow rent back

One determining factor for a seller is giving the seller the option to do a short term rent back. Never underestimate the power of convenience when it comes to a multiple offer situation. Buyers can also include a moving credit for the seller to cover their moving expenses.

Delayed Possession

One of the main reasons why home buyers will back away from a multiple offer situation is because of stress. When it comes to discussing the timing of closing many sellers get overwhelmed. Allowing the seller to have the option to have the buyer move in at a time convenient to the seller is another point the seller might find attractive.

 

Are you or anyone you know interested in buying or selling?

Call Ashley Wilson Realty Group today for all your real estate needs! (704) 251-9741 or email us at Info@WilsonRealtyGroupNC.com