Today I’d like to talk about multiple offers and the formula that will help you, the buyer, win in these kinds of scenarios.
No matter if you’re in a multiple-offer situation or not, it’s important to develop an understanding of the psychology of the seller. Once this is established, you’ll want to go straight to the listing agent and pick their brain for more information on the needs of the seller they’re representing—the ‘seller’s needs’ analysis, as we like to call it. You can then determine how their needs parallel your own and craft an offer around that, which is sure to produce a win-win deal.
After gaining insight into the seller’s needs, write a clean offer by following three steps:
- Write a letter or shoot a video that pulls at the seller’s heartstrings. Doing this allows you to give a heartfelt explanation as to why owning the home would mean the world to you and your family.
- Put together a clean summary page. Too often, the summary page of an offer we receive is crowded and the terms are buried deep in the document. Draft a well-organized, straightforward summary page, so the seller knows exactly what your terms are.
- Make sure the offer is complete. Frequently, small items or terms are absent from the offer, which only does a disservice to its overall presentation. Cover all the bases in your offer.
Next, you should work with an agent from an “icon” team. That team should be known by the larger real estate community for its sterling reputation and serving the community as well as having good relationships with other Realtors. Your agent and their team should have “icon” status in four areas:
- Credibility
- The lender
- The appraiser
- The title agent
Fourth, try to combine contingencies when writing your offer. Wherever possible, condense two, three, or even four contingencies into one. This too makes for a cleaner, more organized presentation.
Also, get creative with your earnest money deposit. There are a few different actions you can take such as raising your deposit as high as or above market value or putting forth multiple deposits—a smaller amount at the outset and, within 10 days, a larger amount.
Finally, try to line up the closing date with the funding date, so it works for all parties. For example, everything will run much smoother if your lender can fast-track the closing process and get the deal done in, say, 10 to 12 days, as opposed to the market’s standard 30 days. A seller is more apt to accept an offer of this nature than one that will sit out there for 30 or 40 days before you have the available funds.
If you have any questions about today’s topic or anything else real estate-related, please reach out to me. I’d be happy to help!