How To Win When There Is More Than One Offer On The Home You Want To Buy

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Are you finding yourself in the position of having to deal with multiple offers being made on the home that you want to buy?  Are there others who want that property just as much as you do and you need to find a way to gain an edge over those other prospective buyers?  With these tips, you will have a much better chance at providing an offer to the seller that they can’t refuse.  It does take being a little flexible, but then if you were not willing to bend a little, someone else will and the keys to “your” home will end up with someone else.

Make An Offer They Can’t Refuse

These days, the lines at mortgage companies are lining up with people wanting to seize the opportunity of the current buyers’ market.  Almost everyone will be financing their new home with either FHA or a straight bank loan – both of which take time and involve signing a lot more papers, and a lot more back and forth.  So right off the bat, if you can offer cash instead of financing – do it.  It does not matter what your source of income will be; whether the cash comes from an equity line of credit, your retirement fund or elsewhere, being able to offer cash will definitely set you apart from other buyers.

It goes without saying that the highest offer would most likely be the one to be accepted.  This does not mean that there aren’t sellers out there who base their decision on factors other than price alone, but the general likelihood of the highest offer being accepted almost always rings true.

Demonstrate A Range of Financial Flexibility

If you can increase the size of your escrow deposit, regardless of whether this is done through installments, it will be a major attraction to the other side.   At a time when most home buyers are pinching for every single penny (even obtaining financing that allows them to put down as little as a few percent deposit), try to go higher to as much as ten percent of the purchase price.

The best time to do this is during the initial period after you have made your offer or right after that 7-10 day inspection period.  Offering this extra flexibility and amount clearly demonstrates your ability and strength to perform under the contract.

Handle The Inspection In Advance To Reduce or Eliminate Contingencies

Be sure to complete your due diligence before you make your offer on the home so you can shave off the extra time (and hassle) of going back and forth over inspection contingencies.  This is one of the best ways to stand alone in a group of potential buyers who have made an offer on the property.  If needing to choose from a simple offer with no stipulations as opposed to one that states that X, Y and Z needs to be addressed prior to closing, it is very likely the seller will choose the simpler of the two.  Not to mention that Asset Managers also prefer property offers with no inspection strings attached.

Be Specific About the Closing Date

This may not sound like a big deal but it can make things more convenient for everyone, including the sellers, listing agent and the lender.  Knowing in advance what your expected closing date is and including it on the offer provides a frame of reference for parties.  Further, it is a requirement on most banks’ application forms that, if not completed, can only add additional waiting time to the entire process.  Just like you, the seller, are likely interested in a quick close, chances are the buyer is also anxious to complete the transaction quickly.  Even though all parties would ideally like a close immediately after an offer is made and accepted, it is simply unrealistic.  So one way to add some points to your corner is to provide a realistic but firm closing date on the contract.

Provide Complete Documentation As Required

This is one area where being organized truly pays off.  If the offer you make is accompanied with all the necessary supporting documentation and/or requirements that may be set forth by either the listing agent or the lender, you are making everyone’s job easier. An example where this will apply is supplying proof of your right to enter a contract if you are acting on behalf of a partnership or corporate entity.  For sellers and agents anxious to sell the property to be presented with a complete package of everything they require versus an incomplete one, the choice is an easier one to make.
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Remember that there is only so much you can do, but as long as you do whatever it is that you DO have control over, if the house is meant to be yours there is a good chance you will get it.  Be prepared for a rejection to your offer so that if it does happen, at least you are not so emotionally vested in the would-be property that it hinders your ability to move on and seek another, better one afterwards.