Profile picture for gshrouder

Multiple offers and how to win

Finding that the real estate market is struggling with low inventory?  Many times this leads to multiple offer situations.  As a listing agent, here are a few tips to help you "win" with your multiple offer situation:

1. Terms are almost more important than price.  Make sure that you offer the best closing time, the most competitive due diligence time frame, and the best earnest money or due diligence money that you can.  I have seen two very close offers have one win due to terms alone.

2. Price. Make sure you are offering the best that YOU can do on this home.  What price will make you feel like you did everything you could to get this home.  Offer what you can, and what will allow you to sleep at night.

3. Realtor. A responsive Realtor is the key to getting your offer in and seen. Is your Realtor returning your calls, do they have email capabilities, do they seem motivated to help you succeed? These are the signs of a great Realtor

4. Lender letter. Make sure you have already been pre-qualified or have proof of funds ready if you are using cash. This is a BIG way to help your offer in today's market. I have seen too many people lose out on great deals because they have not gone to a lender before hand. 

I have hundreds of offers come across my desk each year, and I always want to help other buyers and Realtors know a few handy tips that can assist them in a big WIN!
  • July 23 2013 - Greensboro
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Answers (5)

Tracey, Zillow does not allow Realtors to do blogs, such as yours.  This is a Q & A venue only.  They will find your blog, but it may take a day or two.
  • July 23 2013
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Profile picture for SteadyState
Tracey's advice is is disguised marketing hype.
1. "Make sure that you offer the best closing time, the most competitive due diligence time frame, and the best earnest money or due diligence money that you can. "
Translation: Go out on a limb to close the deal.
2." Make sure you are offering the best that YOU can do on this home.  What price will make you feel like you did everything you could to get this home. "
Translation: Over pay for the property.
....
Tracey as you are a Realtor (C) and the NAR suggests that you are qualified REA can you tell if there is a way to win in a multiple offer situation without overpaying or rushing to close?
If not do you really earn your share of the commission representing a buyer?
  • July 23 2013
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We earn our commission by brokering a transaction.

Desirable real estate is similar to a sealed-bid auction, and the best bid wins. If you do not want to win the bidding, you don't have to. Tracey's advice is for people who want to win the bidding.
  • July 23 2013
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Profile picture for gshrouder

The reason I posted about multiple offers is because this is the number one question I am asked on a daily basis as a Foreclosure Listing Agent.  Buyer's agents, buyers themselves, and just the curious are always asking how they can "win" in a multiple offer situation.  I was just giving some simple suggestions, in the hopes that it would help someone that was frustrated with the multiple offer situation.  On my end, I represent the Seller as the agent and do NOT do traditional dual agency.  In fact, I may be the only firm in our city that does not allow the agents to work for me to do "both sides" of the transaction.  I do not feel that you can properly work for both parties equally, and so I do not allow it.  We allow dual designated agency, which means that if one agent in our company lists a home...then another agent in the office can sell it.  But it is a separate transaction, with each party having their own Realtor. 

I also never suggest that a buyer overpay for any property.  I would run my buyer clients a CMA, with price per square foot, and I would have the 6 month and 12 month sales values.  I would inform them of what the market holds, and then let them know that ultimately THEY make the decision on how much they want to pay.  I don't want to be a "turn and burn" Realtor, and I fully expect that 5 years down the road when they want to sell that home...that they call me. 

I hope this answers some of your questions.

  • November 13 2013
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Profile picture for user3040604

As a seller and buyer in a very competitive market, this advice is 100% spot on.  I just sold my property with 5 offers.  The winning bid was NOT the highest offer, but the best terms that put it in close proximity, but still below, the highest offer.  The highest offers terms were not that great.  It is not always just about the $$. 

Now I am trying to buy.  Last week we were one of 12 bidders and were not the winning offer.  In that case we decided to stay in line with the comps and not go for broke, and be ok with it if we didn't get it-- if we found out later we lost out by $5000 or whatever, fine.  The house we are bidding on this week is looking at offers tomorrow and for this one we may go for broke as I would be upset to lose this one over a few thousand.  

In 2005, when we bought the property we just sold, I absolutely thought we had overpaid and would never get the money back out of it.  We sold for about 30% more than we paid so I was wrong about that.  If you are buying a place you can afford AND plan to live in for years, does it really matter if you "overpaid"?  and what is wrong with closing quickly?  If you have the cash or your lender can do it... Doesn't mean you have to move the day you close.  We closed on our condo in 10 days (cash buyer) and have three months free rent back to find a new place.  

An underlying message is know your market- hopefully your agent can help you with that!- and know what it takes to get the house you want in your market. 

  • January 28 2014
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