If you are one of the lucky souls who have been looking for a home in 2020/21, you may be getting frustrated and losing hope. Multiple offer situations are never ideal for the buyers side. We can guide you through important decisions that will get your offers considered and accepted. Feel free to contact us to discuss any of the following in more detail.
Find a reputable mortgage lender. A pre-approval from a local bank or credit union instead of an online or out of town lender will show the seller you’re a solid buyer. Every seller always has thoughts on if the sale of their home will close or not. Give them peace of mind and do it right from the start.
Finding a lender to give you a commitment within a week. There are lenders out there who can do this. For more information, please contact us.
Have your mortgage lender call the listing agent after you submit an offer. Doing this will give the sellers extra confidence when going through multiple offers.
Connections are key. Write a thoughtful letter to the sellers. Having that personal feel will really stand out with a seller sifting through tons of offers. Tell them how you will use their home and be sincere in what you like most about the home/neighborhood.
Closing dates can be negotiated. Always being aware of the sellers terms is essential when making an offer. Are they waiting to find a home of their own? Maybe write in a rent-back agreement or give them time to pack and move their belongings for a few days after closing. Being flexible in this area is a great way to show you value their time and are considerate of their situation.
Writing an earnest money deposit for an above average amount. Typically, 1% of your offer amount is what the earnest money deposit is. Throw in a larger number to show you’re serious about the deal. This deposit is refundable when stated in the offer if the contract ends up falling through.
Having a down payment of 20-25%. Putting more down shows you have the means to close the deal.
Consider excluding contingencies. Appraisal, inspection, sale of another home, review of deed/covenants, financing, etc. There are several contingency choices available for buyers to write into offers. Some are required by VA and FHA lenders, so those are not avoidable. In a seller’s market, the least amount of asks is what the seller is looking for. Contact us to find out more about how you can be competitive in this part of the deal. We have several methods for negotiating the cleanest offers to present to sellers that still keep the buyers best interest at hand.
An all cash offer – even if you intend to use financing. Having proof of funds to cover the entire offer amount will set you apart indefinitely and show you are a qualified buyer. If your offer is accepted, you can choose to use cash and/or financing to close.
Think twice about asking the seller to pay your closing costs. This will directly effect the seller’s net proceeds and they will flip through your offer with no intention of looking back.
Offer lingo -“escalation clause” or “writing first and countering last”. Contact us to discuss how these can be used in multiple offer situations.
If contingencies are needed, consider shortening the amount of time. Each contingency has a minimum number of days needed to adequately perform due diligence. Talk to a buyer’s agent today to see what your options are.
Finding a buyers agent that goes above and beyond. In this day and age, many buyer agents stick to texts and emails when communicating with listing agents. This will have a direct effect on if your offer stands out or not. Hiring a buyer rep that values communication and building relationships by a phone call is how to make the deal happen.
“Sight Unseen” offers. With a market like this in 2020/21, many homes have an accepted offer after a couple days. Those few days of showings only allow for so many buyers to actually be able to make an appointment to see the home before the seller’s agent is calling Highest & Best. Consider sending an offer on Coming Soon listings if you like what you see. You can write in a contingency of a walk-through after acceptance. Contact us to discuss this strategy more in detail.
Offer to pay the seller’s closing costs. This will put more money into the sellers bottom line and not have any effect on an appraisal value.
In Closing
The Twin Cities in Minnesota is booming with eager buyers ready to take that next step. These tips are all ways to sweeten the deal in a hot seller’s market with multiple competing offers. The highest price isn’t always the most appealing. Finding the right combination of what the seller wants is what a great buyers agent is for. It’s so important to work with an agent who is positive, even tempered, knowledgeable about current area real estate markets, and a fair negotiator.