We’re at the time of year where the market is heating up and multiple offers are becoming more and more common. Many agents, including Greg, want to know how to get their offer accepted when there is a multiple-offer situation. We actually came up with a plan last summer during the hot market and I wanted to share that with you today.
The first thing we make sure we do is include a pre-approval letter as opposed to a pre-qualification letter. A pre-qualification doesn’t necessarily mean someone can afford a home. With a pre-approval, you have income and asset verification, which gives you a strong indication of your buyer’s finances.
Depending on the type of financing, removing the appraisal contingency may be another option to explore. When going over asking price isn’t enough, this really makes a seller feel good. Last year, we sold a home for $20,000 above its appraisal price because the contingency was removed.
Next, earnest money is crazy important. It indicates the buyer’s willingness to agree to the terms and conditions in the contract. We all know that 99% of the time, there are so many conditions and contingencies that there are multiple ways for buyers to back out if something changes. The more earnest money you give, the more skin in the game you have, and sellers respect that.
What is the one thing that sellers hate when going through inspections? Seeing that long list of inspection items. To combat that, we’ve started specifying in our contracts that the inspections are for the buyer’s peace of mind and for health and safety issues only. This is telling the sellers that you’re not planning on nitpicking the report, and unless something is a safety issue, you probably won’t ask to get it fixed.
Finally, make sure that you reach out to the seller’s agent. Ask them what their seller wants out of the transaction besides price. This helps you in advance to tailor your offer to what the seller wants. Giving the seller time to move out, for example, can be a huge factor for sellers and could help your buyer win the home.
I hope these tips were all helpful to you. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.