Putting together an offer on a home almost always comes with a few challenges. One of the most significant is striking the right balance. You want to secure a good deal for yourself, yet your bid should be as attractive as possible to the sellers involved.
Unfortunately, when there are multiple offer scenarios on the table, you may have to work that much harder to make yours stand out. The good news is, there are steps you can take to improve your chances of winning!
Here are five tips for buyers coming out on top when there are multiple offers on your dream home…
1) Up your deposit amount
Also known as earnest money, your deposit is the portion of your purchase price that you provide upfront. The amount is entirely up to you, though somewhere between 3 and 5 percent is fairly typical. That said, in the eyes of a seller, higher is better!
You’ll indicate your deposit amount within your offer—and beefing it up could give you a competitive edge over other prospective buyers.
2) Submit your best offer first
To avoid paying more than they have to, many buyers start by offering an amount that’s below the maximum they’re willing to pay. While leaving that cushion for negotiations can sometimes work in your favour, it’s not always the best idea in competitive situations. Sellers who have many options are far less likely to give you the opportunity to up your bid.
Of course, there’s no one-size-fits-all approach to winning a bidding war. Fortunately, an experienced agent can help you determine the best strategy based on your circumstances.
3) Make it as clean as possible
To reduce the risks involved in making a home purchase, buyers often include conditions in their offer. These are stipulations stating that a particular event (like a successful inspection or full mortgage approval) must occur—or you’re not bound to your offer.
The truth is, conditions can be a turnoff for sellers. This is especially true when there are multiple offers involved. In contrast, making a clean offer (aka one that’s free of conditions) can give you an advantage.
A word of warning, though. Forgoing some or all of your conditions can be a risky proposition. If you think taking this step could help you land your dream home, talk to your agent about precautions you can take to protect yourself.
4) Be as flexible as possible
While money is usually the most important consideration in any deal, a willingness to accommodate the seller can also work in your favour. Why are they selling? They may not come out and tell you, but your agent may be able to get a sense of what you can do to make their lives easier.
Timelines are often key. If a quick, efficient closing could help your seller out, being willing to oblige could go a long way in their eyes. Likewise, if a bit of extra time will mean less stress for them, consider offering to provide it.
5) Work with a local expert
Multiple-offer scenarios and all-out bidding wars can be stressful, to say the least! In these situations, the stakes are high. That’s why having a true community expert on your side is so important.
Working with an agent who has the local market knowledge, negotiation expertise, and a strong track record with buyers can help ensure that you put your best foot forward.
Ready to find your ideal home? Check out the latest local listings, or get in touch to learn more about buying with our team!
