It’s hard for buyers to understand why the highest offer didn’t win the home!
While I’m not a fan of the term “bidding wars” from a buyer’s perspective multiple offers are bidding wars and somebody wins and somebody loses. The best way to prepare a winning strategy is to do your homework ahead of time and write a contract that appeals to the seller.
2. Financing: Lender documentation that you went through the hoops to secure a loan once you find a property is a requirement. Sellers tend to look at the amount financed and while you may secure a loan with 5% down -the seller may opt to go with a slightly lower offer where the buyer is putting more money down and financing less. It happens. Also if you expect the seller to pay your closing costs factor the expense into your offer.
3. Contingencies: Try to write a clean contract. Financing contingency for non-cash buyers is pretty much the norm. Home inspections are disappearing during the current bidding war era. Obviously requesting time for in-laws to see the house or asking the seller to modify the property will most likely send your offer to the bottom of the stack.
4. Flexibility: Closing and occupancy dates can be the ace in your hand. Sellers may be scrambling to secure their next property and may need to delay the closing or require extra time to move. Buyer flexibility on these 2 issues may put the deal together. Sometimes time has a dollar value and while I’m not suggesting that you give up “valid rent” if required but your offer may win because you agreed to allow them 14 days to vacate versus just trying to outbid the competition.
5. Timing is everything!: You may lose a few before you win in multiple offer mania. If a hot property hits the market in the morning and you work until 6pm and by the time you view the property 3 offers have already been submitted- it’s timing.
Multiple offer situations are very stressful for buyers and their agents. Don’t shoot the messenger (your agent) because your offer(s) ends up rejected. Each seller is unique and tailoring a winning offer in multi-offer mania requires a lot of work and sometimes- creativity. Need help finding a home- Contact