Multiple Offer Situations are pretty common in the Silicon Valley and the Peninsula Bay Area- they are a really competitive marketplace! Most of properties are receiving many offers and often offers way above the list price. Navigating these multiple offer situations to a successful conclusion is often a daunting task.
Without the right skills, you’ll get nothing.
Well, just the courtesy call from the agent telling you that the owner chose another offer.
“We are in a Multiple Offer Situation…” These are the last words we want to hear after making a offer. All the effort to find a good home. You analyzed all the disclosures and inspection reports. Did all the research about pricing and wrote a great offer, only to be let down.
It is difficult to win a multiple offer situation without applying the brute force of money. Your offer can be wonderful but if there is another buyer offering more money, you don’t stand a chance. No one wants to throw money at a multiple offer situation but without it you cannot win the battle. But what can you do to cut the amount of money you throw at it?
Here are some tips for when you’re in a Multiple Offer Situation
- Less contingencies is better! Try to come to grips with the idea of offering a couple or zero contingencies; you can ask for a pre-inspection and already have a pre-approval letter, for instance.
- Offer a large down payment. The larger the down payment the higher level of certainty the listing agent will have in your ability to get a loan.
- Your offer says a lot about you. Present a clean, well organized and fully documented offer.
- Introduce yourself. When visiting the open house try to make a friendly personal connection with the listing agent. Even better if the sellers happen to be present, go meet them, be nice, polite, attentive and whatever you do, don’t discuss anything negative, especially about the home. Do your best to find common interests you can refer back to in your letter to the sellers.
- Write a letter to the sellers. Let them know why you like their home and why it would be a good fit for you. Show them how their home will change/ improve your life, if you have kids, ask them to write or make a drawing about what they like most about the house. Make a personal connection.
- Have your offer delivered personally. Ask your agent to present your offer directly to the seller whenever possible. These days most agents request email offers but some agents still prefer the old fashion way, face to face. Getting in front of a seller with a clean, well prepared offer and a nice letter from the buyers can yield great results.
If you have the best combination of price, terms and a savvy agent, you’ll win!