In real estate, it’s often you’ll hear things like, “it’s a hot market,” “we’re seeing low inventory,” and “buyers are receiving multiple offers,” but what does that mean? Well, low inventory refers to the number of homes on the market, which can create a hot seller’s market if there are more buyers than sellers. This hot seller’s market makes buyers more competitive, and the seller will often receive multiple offers to purchase their home. With the basics out of the way, how can you make your offer stand out without paying more than you’re willing to? Let’s take a look!
- Consider why the owner is selling.
If you understand why the seller has put the home on the market, you can include items in your offer that solve the problems they are facing and make your offer stand out. Showing the initiative and empathy to understand the seller’s side will often win you points and gain you a good first impression from the seller.
- Be ready for a quick closing timeline.
A drawn-out closing is unappealing to many sellers as they have their own timeline they’re trying to keep. A cash buyer can be enticing to sellers as well as a buyer that is partnering with a lender that is willing to fast-track the financing to make sure there’s little to no waiting period for closing.
- Put a face and name to the offer.
In a multiple offer situation, the seller will just see a variety of numbers and paperwork, so adding a personalized note to the seller letting them know why this property is special or important to you can make you stand out. Pulling at the seller’s heartstrings can win you the home if the owner is sentimental and wants to sell to someone that sees its worth just as much as they do.
- Be low-maintenance and easy to work with.
Being pushy in a high-stress environment will not win you any favors with the seller. Take a deep breath and make sure that you portray to the seller that you are willing to work with them every step of the way. If you have experience buying and selling, tell that to the seller and let them know that you’re not looking to negotiate over superficial repairs.
- Go big with the option fee and earnest money you offer
High earnest money can demonstrate serious interest and commitment, and so can large option fees. Many buyers stick to offering $100 – 250, but if you can offer $1,000 in option fees, you will immediately differentiate yourself from other offers.
Thinking outside the box and making your offer extremely competitive in a multiple-offer environment can be exactly what you need to come out on top, and remember, you don’t always have to pay the highest price! Just do a little digging and find ways to put the seller’s mind at ease. Have questions about how we help our clients win in multiple offer situations? Reach out to our experienced, professional team anytime–we’re always here for you.