How to stand out in today’s market - Tip 2: Multiple Offers

We’ve been talking a lot about the craziness of our market for both buyers and sellers. This week we wanted to give buyers a few tips on how to be successful in this crazy market 😜

Tip #2: How to WIN in a multiple offer situation

With so few houses for sale today and low mortgage rates driving buyer activity, we are seeing more and more bidding wars. With multiple-offer scenarios heating up, here are our tips to make your offer a competitive one when you’re ready to make your move.

FIRST: Remember our first tip - Be ready with your pre-approval

Buyers who are pre-approved are definitely a step ahead when it’s time to make an offer. Having a pre-approval letter indicating you’re a qualified buyer shows sellers you’re serious. It’s often a deciding factor that can tip the scale in your direction if there’s more than one offer on a home. It’s best to contact a mortgage professional to start your pre-approval process early, so you’re in the best position right from the start of your home search.

1. Present Your Best Offer

In a highly competitive market, it’s common for sellers to pick a date and time to review ALL offers on a house at one time. If this is the case, you may not have an opportunity to negotiate back and forth with the sellers. Offer your highest price, one you can live with if your offer should be rejected. Do your best! Make it attractive, maybe even a little above list price.

2. Win on terms, without the best price

You might think the winning offer would be the one with the best price. However, the winner could be the one with the best financing.

Financing - A conventional loan provides less hurdles than an FHA loan. An offer showing you’re putting 20% down also shows you might be more financially stable than the offer with 3% down.

Inspection - You can get clever with the inspection period as well. Offering no inspection or “as-is” could be more enticing to a seller who’s concerned they might accept an offer up front only to have it fall through during inspection.

There are lots of small things you can add to your offer. Be sure to discuss with your real estate agent what might make your offer stand out.

3. Find out what the seller wants

Have your real estate agent find out if the seller has any wants. It might be a closing date preference, post-closing possession, as-is condition. This creativity can make or break your bid in a multiple-offer situation.

4. Play Nice

Don't ask the seller to give you personal items and don't expect the seller to pay your closing costs. Find out which costs are customarily paid for by the seller and offer to pay one or more of them yourself, such as title policies, termite inspections, and attorney fees.

5. Write a letter to the sellers

Most sellers have an emotional attachment to their homes. They want them to fall into the hands of an acceptable buyer. So be that acceptable buyer. Write the seller a brief letter explaining why you love his home so much. It's okay to beg a little - be sappy but sincere.

6. Act Fast

With homes selling QUICK, there’s no time to waste in the process. Last month in the Des Moines area market, homes under $300,000, sold on average in just 14 days.

Since the lockdown ended 87% of our team listings have sold in under a week!

As you can see, the market is gaining steam.Essentially, you may not have time to sleep on it or shop around when you find a home you love. Chances are, someone else loves it too. If you take your time, it may not be available when you’re ready to commit.

Bottom Line

The housing market is very strong right now, and buyers are scooping up available homes faster than they’re coming to market. If you’re planning to purchase a home this year, talk to a local real estate professional to learn more about your current area, so you’re ready to compete – and win.

📥 Hokel Real Estate Team | www.hokelrealestateteam.com | 📲515-981-2113