Ask Riley?
Multiple Offers: a Survival Strategy for Buyers
The good news is you've found your dream home. The bad news is other people want it too. In the Bay Area and especially near the 580/680 corridor, where the supply of desirable homes usually lags well behind demand, multiple offers are a common place.
How can you win at competitive offers? How can you buy without over paying?
Here is just a few strategies to help you win, or if you don't win, you will walk away without regret. Note: I could teach a class on all the strategies I use but at least this will give you an overview. Also, here is a link to my 580/680 Market Stats and Commentary & my Buyer's Start Page Link. (one of the best all around pages on the web site)
First, you need to be the strongest buyer. And just as beauty is in the eye of the beholder, so is what the seller and the seller's agent feels is the strongest buyer. You might think the owner would be very happy to have buyers competing for her house: more buyers, more money, right? But what about the buyer who stretches too far, ties the property up, then panics when the dust settles and cancels (Buyer's Remorse)? If your offer is the "strongest" it will win over a weak buyer offering more money.
But how do you do that...I could teach a class...
Show your strength by being Pre-Approved for a loan, and bring a letter from your mortgage lender with the offer. The mortgage lender is best to be "local" and "well known and respected" to help show you can deliver and on time. This way the seller's Agent and the seller feels more comfortable with your ability to close (please note: changing lenders in the middle of the escrow could be considered fraudulent-so do not change in the middle of a plan). The approval amount (Purchase amount) should be as high as possible, even though you never planned on going that high. You should provide bank verifications that you have the necessary funds "on hand" to close. Copy of your FICO Score. Read and sign off on the sellers disclosures and reports when the seller's Realtor has requested it. Be as flexible as possible on the closing time. Use the Listing Realtor's escrow company of preference, termite company, home warranty company, & etc. And , "if" you easily can, bring in a home inspector before writing the offer to help make a non-contingent offer regarding inspections (maybe AS IS, with as little conditions and the least amount of time-lines as necessary). The more informed you are, the more "credibility" and show of "Strength" you have with the seller, if you can "show" the seller you are very motivated, ready, and able to close the deal, the STRONGER you look to the eyes of the seller and the seller's agent!
It goes without saying that if you need to sell your house first you have absolutely no chance in multiple offers scenario. This is always tough...please call me for details on how to approach this dilemma...925-200-3908...or e-mail me.
The first thing sellers look for is "price". Multiple offers are a type of blind auction where the buyers don't know what each other are bidding but the seller knows everything. Every time you "ask" for something of the Seller's Agent and/or the Seller, you have put yourself at disadvantage disadvantage with your competition (other Buyers). Also note, every multiple offer situation can be different. Finding out "how" the Seller's Realtor works is extremely important. There is a strong possibility you must offer over the asking price to have any chance. But how much? There are basically three possibilities.
- If you like it but you can live without it, come up with the price that, if you are outbid by only five thousand, you would not have paid any more and are satisfied.
- If you love it but can only pay so much, take your best shot and no whining if you lose...You did your "best".
- If you love it and have to have it no matter what, write a solid offer - more than you imagine any rational person would pay - and have your agent tell the seller you want a counter-offer if you're offer is not acceptable. Often a seller will give you a shot. The inside track is the X - Factor...your Realtor's presence in the industry. What your Realtor knows and how he presents it, is "key". But "who" he knows and "how" they know him is just as important! "Presentation" is everything and it's all the "little" things, added up, that nets you a home.
Will you be paying too much to get your dream home? Maybe, but you'll be swinging in the hammock at your new home while your competitors are still spending their weekends pouring through the real estate ads, driving around to open houses, not sleeping at night, watching interest rates, wasting rent money, and watching home prices skyrocket tens of thousands every month!
If you have lost in the past, and just one of the ideas above was NOT addressed, maybe you are working with the WRONG, Real Estate Broker!
Feel free to call me for an appointment so that we can, together, plan the very best "Strategy" for you and put into "Action"...925-200-3908.
E-Mail: Riley? |