Again with our real estate market here still being a sellers market especially with lower price points we are getting more and more scenarios where we are competing with our buyer looking to purchase a home and competing against multiple offers. Even at higher price points if the home is really nice and priced to sell we can see multiple offers. So how can we prepare our buyers to not only survive but win out in a multiple offer situation. This is part 4 of 5 and part 1, 2 and 3 can be seen at TemeculaRealEstateJournal.com or my YouTube channel.
Making a winning offer is more art then science. We have five different
strategies for surviving a multiple offer situation to get you the results
you’re ultimately looking for: The house you want, at a price you can afford.
So here we go with the fourth tip.
Save by offering more than the asking price
Sometimes it’s NOT all about the benjamins: closing-ability is key
Sellers care a lot about how likely the offer they accept is to close
escrow. When multiple offers get so frenzied that buyers seem to be throwing
money at a home, smart sellers pay attention to their home’s real value.
The fact that their home might not appraise at a crazy high price will
motivate smart sellers to focus not only on offers that are lucrative, but also
those that seem realistic and close-able, which sometimes means an offer below the highest bid.
You need to show you can really close
There are ways to showcase your ability to close during the offer process:
• Provide approval letters from lenders
• Have proof of cash to close
• Having a licensed real estate professional represent you will separate you from the competition
• The professionalism with which the offer is prepared and presented
• Evidence of your credit score and credit worthiness
• Write an offer letter – this is your chance to make a human connection with the seller. Most sellers are going to have very deep emotional ties to the home they are selling.
All these things can contribute to a seller’s estimation of how close-able
your offer is. If you’re competing against other offers, you should
be maxing out both your price and your offer’s close-ability, as evidenced by these characteristics.
Ask your agent about documentation you can provide to prove your ability to close and do it quickly. I hope this update has been helpful!