How To Knock Out Your Opponent When There Are Competing Offers
In the current housing market, competing offers are not uncommon. We’ve had to turn away some very strong offers on our listings because other offers have better terms. We’ve also worked with several buyers who have recently had to compete for the home they really want. Here’s a few tips to help your offer edge out the rest:
Offer a strong price: Of course, this is one of the most important factor to sellers. A strong price can get you the property, but it’s definitely not the only factor. Don’t think in round numbers either. Consider the round number that everyone else may offer, and bump your price up a hair more.
Minimize contingencies: When a seller has multiple offers to consider, the offer with the fewest hurdles definitely looks most desirable.We’ve had sellers accept an offer with no contingencies for $12,000 less than the offer with the strongest price.
Have strong financing: Low down payment specialty programs always seem to have more challenges associated with them. For example a recent FHA loan required the seller to get an unpermitted basement permitted and code checked. Cash offers are always strongest, but conventional financing with a strong down payment is the next best thing.
Flexible closing date: Find out the sellers situation and preferred closing date. If you are willing to make the timeframe convenient for the seller, some of the other terms may become less important. Maybe the seller has another house lined up and wants to close as quickly as possible. Or maybe the seller doesn’t know where they are moving yet, and they still need a couple months to search.
Whatever you do, in a seller’s market like this, you have to think like the seller. What would look most desirable to you, if you were in their shoes?