Multiple Offers – Preparing your best Offer
Posted by Elizabeth Biberger on
The current market is proving very challenging for buyers. The inventory is at a record low in all categories and there are still lots of buyers vying for the few homes available. The purpose of this blog is to provide some guidance in how to approach a multiple offer for the best success. First, I want to make it very clear that if you require conditions, such as financing or inspections, you should not eliminate them from your offer unless your bank has given you WRITTEN permission to do so. Having a frank discussion regarding the property with your bank is important as the physical condition of the home may be a reason that the bank will not approve a mortgage.
Many listing agents are now delaying presentation of an offer for a stated number of days after the listing has entered the MLS system. This allows the property to get lots of exposure and is done to hopefully generate a multiple offer for the seller. Multiple offers will often result in a sales price above asking. If you view the home in the first few days it is listed this gives you time to prepare your offer. In this market, you need to act quickly and the first thing is to view as soon as possible. There are many conditions you can eliminate from your offer with a little bit of work. If you require financing you could potentially arrange to have an appraiser appraise the property and get your financing in order prior to presentation. This may allow you to move forward without a financing condition. You could also arrange for a building inspection prior to presentation. Remember however, that you could be outbid and as such be out the cost of your appraisal or inspection. Sellers will look at more than just price and presenting an offer that is without conditions or with minimal conditions is very powerful. If you do not wish to pay for inspections or an appraisal in advance, then pre-book your inspections so that they can be completed in a very timely manner so you are able to remove conditions quickly. Finally, make the deposit count. A larger deposit if far more attractive to a seller. Hopefully, some of these suggestions will help you present a more powerful offer the next time you are in a multiple bid situation.