In todays video I will look to address a way to assist our buyers with tips for competing with multiple offers. With our real estate market here still being a sellers market especially with lower price points we are getting more and more scenarios where we are competing with our buyer and multiple offers looking to purchase a home. So how can we prepare our buyers to not only survive but win out in a multiple offer situation. There will be a lot to go over so this will be a multi-part series covering the tactics we recommend to come out on top.
Making a winning offer is more art then science. We have five different strategies for surviving a multiple offer situation to get you the results you’re ultimately looking for: The house you want, at a price you can afford. So here we go with the first tip.
First step is to gather as much information about the property, the seller, and the market situation where the property is located. As your buyers agent this is what we do for you behind the scenes.
You are in no position to negotiate, aggressively or otherwise until you are well acquainted with the real estate market immediately surrounding the home you want. Some key answers we seek for our buyers is:
What have similar homes recently sold for?
How much above or below asking price do homes sell for nearby?
How long do homes stay on the market, on average, compared with the home you’re looking to buy?
These numbers are important to how we structure the offer and we will help you understand how they should relate to the offer we prepare or response.
We will also look to consider the sellers needs as well and we will look to collect information about what’s important to the other party, like do they care about moving quickly, getting top dollar, or certainty that you can close the deal. This becomes important because we are seeing the sale of their home effecting the home that would like to purchase. The other agent isn’t obligated to disclose but often will provide to help facilitate a transaction.
Its also important to establish your bottom line, first and foremost. Its critical to know what your own priorities are. Ultimately, the bar for whether your negotiation for your home is successful is based on what the home and the terms of the contract are worth to you. Know your bottom and top lines for price and what your own priorities are before the negotiation begins.
Finally a couple of quick tips………….. Ask your lender to provide a set of loan scenarios at the outset of your house hunt. This will help you decide on your price range when its time to negotiate. Also in our area HOA fees and taxes could effect your home purchase. It is important not to go into your home search blindly with the attitude that you can just low ball every offer and win. Every situation is different and different tactics may be required to insure you get the home you desire.
