Buyers: Find Out My Winning Strategy To Get Your Offer Accepted In A Multiple Offer Situation
My Winning Strategy To Get Your Offer Accepted In A Multiple Offer Situation.
I recently wrote a blog on Buying A Home In A Seller's Market. I have represented Buyers in many multiple offer situations. Maybe because of the unpredictable human element, there is no one offer situation that is the same. If you view a house and there are already 20 agent business cards on the table, the chances of a multiple offer situation is very high. Going with an inexperienced agent who is not familiar with the multiple offer process or how multiple offer is handled can cost you tenths of thousands. A freehold sale, a condo sale and an estate sale can be very different from one another. I have many strategies that has proven to work, but here are the top 5 things I do to help my Buyers increase the odds at winning a multiple offer situation and add value to your real estate purchase:
1. Price and Price Check
This might sound obvious, but you need to go in with your highest number and the best offer on the get go as you might not have a second chance to improve. The Seller's goal is to get the highest price for their property. Their eyes will first be drawn to the purchase price number when they review the Agreement of Purchase and Sale. Would you be upset if you found out you lost the property by $10,000 to another bidder knowing that you would have been happy to pay that price for the home?
When I sit down with my Buyers to determine the price range of the subject property, I show them the "list versus sale" comparison of similar homes in the area to help the Buyers assess a rational price range they are comfortable to put down on the offer. The amount you put down should not be based on emotions. With underlisted properties saturating the market, there could be quite a variance when it comes to the final selling price. I have also occasionally come across listings that are priced at or above fair market value, and the Seller is hoping an uninformed Buyer will come along and offer over asking. Buyers are often stuck on the asking price when they view listed properties on the market, which will not always reflect it's market value in a seller's market.
2. Offer Presentation In Person
Unless the Seller has given specific instructions that they do not want to deal with Buyers, whenever possible, I will present your offer in person. Sellers who have lived in their home for many years with strong emotional attachment are usually interested to find out who will be taking over their home. The Sellers may be more interested to sell their home to an end user rather than an investor who might tear down the structure.
I have other creative strategies if I am not given the opportunity to present in person to make a good first impression.
3. Inclusions, Exlusions and Conditions In The Offer
It's common to see offer with no conditions when there are a handful of competing buyers going after the same property. In order to protect your best interest, I will guide you on conducting any necessary due diligence on the property ahead of time before structuring a potential unconditional offer. It is important to be transparent with your real estate agent on your budget and your financial ability to pay for the purchase, read all the agency documents and contracts at the beginning of the agency representation. Understanding the process will ease anxiety, lower risk, and help structure a winning offer.
4. Attaching a Deposit With The Offer
Having a deposit attached with the offer is ideal and will make your offer stronger in the event you compete against similar offers without a deposit attached. Most Sellers prefer not to have to wait for the certified deposit to be delivered. If 2 offers are closed in price, the seller may choose the one with a bank draft attached or the offer with a higher deposit on the table. Having a bank draft deposit ready will give you a competitive edge. I can advise Buyers on what is a good deposit.
5. Keep It Clean
I will go through all the typical warranty clauses to help you assess which ones are of little importance to you. If you plan on switching out the appliances after the purchase, or purchsing the property in "as-is condition", it may not be important to keep the fixtures and chattels warranty clauses or having the property professionally cleaned. The less the Seller has to worry about before closing, the better it will make your offer look.
Every offer on a different property may be a little different depending on the situation. Not only is it important to work with an experience real estate agent to structure the most attractive purchase offer in a multiple offer situation, a winning strategy should keep your best interest in mind to ensure a smooth transaction and gratiftying purchase experience.
Anne Lok is a Toronto Real Estate Agent with Blue Elephant Realty Inc. specializing in modern properties, unique homes, boutique lofts and condos, architect designed homes in low density neighbourhoods. Contact me for a consultation to discuss your real estate needs.