Multiple offers in Real Estate – Depending on the price, condition and location of a home, we may see multiple offers. I know we don’t hear the term multiple offers as often as we used to, but they are still out there. What makes your offer strong? The right offer price, of course.
Are you asking for seller paid closing costs? The less you ask for, the stronger your offer is.
Is your escrow deposit or earnest money strong? Giving a strong amount for deposit shows the seller good faith. Remember, if all the contingencies in your contract aren’t approved, you get your earnest money back.
How much is your down payment? 3.5% down or 20% down – A 20% down buyer is a stronger buyer. An all cash buyer is even stronger because there’s no financing contingency. A financing contingency means the sale depends upon the buyer obtaining a loan.
Is your pre-approval letter or proof of funds included with your offer? If not, your offer is very weak and probably won’t be considered.
If all things are equal, it can come down to the professionalism of the agent. Why does that matter? It matters because if 2 offers are identical, we will probably choose the offer that came to us in the most professional manner. Professional offers are completely filled in, typed clean and leave no unanswered questions. If the agent doesn’t return calls, that can be a challenge. If all things in the offer are equal, it also comes down to if the agent plays well with others. That means we know that it takes on average 4 to 6 weeks to get to closing. We want to work with agents that are nice and will help to get the job done. After all, real estate is really about the people.
Recently we had a seller take an offer considerably less than another one because the buyers wrote the sellers a letter. The letter explained that the buyers loved the home and wanted to raise their family there. It was heartfelt and both the seller and the buyer felt good about the transaction. Another time, we represented a buyer who was in the military. I wrote to the listing agent what it would mean to the family to have a place to call home and settle down. The seller on that one accepted our offer even though it was less than other offers that were presented. It’s not always about the numbers and the bottom line. Buying and selling a home can be an emotional experience and sometimes we need to address that.
Using an Escalation Clause with Multiple Offers
In order to help our buyers get a home when we are in a multiple offer situation, we will use an escalation clause. An example reads like this: All parties agree that buyer will pay $1,000 above any bona fide written offer up to $500,000. So, if another buyer put in an offer of $498,000, our offer would be $499,000 which is the other offer plus $1000. It’s just important that the listing agent understands what it means. I always verify because I’ve seen agents dismiss offers they didn’t understand.
In conclusion, when you’re in a multiple offer situation there are more things to consider than just the sale price. Please contact us, Jen and Mark Bowman, Keller Williams on the Water at 941-840-0117 if you’re ready to win in a multiple offer situation.