Lately, I have found myself knee deep in several multiple offer situations, and from the buyer’s side, the anxiety, the stress, the impatience…the whole emotional roller coaster is palpable. Right now, we are headed into a busy spring market, and here in Charlotte, if you are a buyer looking for a home in $250k or under price range, you need to be prepared to act fast and face dealing with multiple offers on a hot property. I ALWAYS operate under the notion that if it is meant to be, it will happen, but there are a few things you can do to help make your offer stand out among the rest.
Build Rapport
Buying or selling a home or a vacation rental is an emotional process on both ends of a transaction. Can you picture your family living in this home you’re offering on?? Will you take care of their home or vacation property like they did? Tell the seller! Write a letter sharing why this home is perfect for your family. Humanize your letter by creating stories. Don’t just tell them how much you love that breakfast bar…tell them how you can picture your children eating their afterschool snack and doing their homework there while you cook dinner. Love the big backyard? Tell them how much your baseball-loving boys will love playing catch with their dad out back. Been looking all over for a finished basement? Share how excited your teenage daughter is to finally have her own space. Help the sellers connect with you and feel like they are choosing the perfect successor. One of my recent clients wrote a beautiful letter about how much she was looking forward to baking Valentine’s Day cookies with her daughter, and I love being able to check in with her last week and hear about all the fun had on their first Valentine baking day in their new home!
Be Prepared
It is imperative that you have your financing lined up and that you are armed with a prequalification letter from a lender you trust and know will be available to assist you when you are ready to make an offer on a property. Make sure you are clear on what type of loan you can qualify for, what type of down payment you will need, and where your money is coming from. Know what funds you will need for earnest money deposit and due diligence, and have the money available. Talk to your lender about what to expect and what type of timeline they will need in order to complete underwriting for your loan. If you are thinking about withdrawing funds from a 401k or the like, know what is required to access your money and be aware of any limitations. You want to make sure that you are able to deliver on a timely close, as sometime a quick close in 30 days or under can make your offer more attractive to a seller.
Make Your Offer Strong & Clean
Multiple offer situations are unfortunately not going to be an opportunity to get a deal. Your offer price needs to be your true highest and best. Don’t leave anything on the table or room for regret. You likely will not get an opportunity to bid higher, so make sure that whatever you offer is the highest you are truly willing and able to go without feeling as though you overpaid or overextended. If someone outbids you, you’ll feel better about it if you truly would not or could not have gone higher. While buyers can often negotiate personal property or seller assistance with closing costs or home warrantees, these are things you’ll want to leave out in a multiple offer situation if possible. Requiring less of the seller keeps your offer clean and therefore more attractive. Consider increasing your due diligence money to match or exceed your earnest money deposit. While due diligence money is a risk, as it is money the seller keeps regardless of whether or not your follow through on a contract, a strong due diligence deposit shows the seller a strong intent to follow through and gives them piece of mind when choosing to accept your offer.
Encourage Your Agent to Keep in Contact
While you can develop rapport with a seller through a letter, your agent has the opportunity to form a strong relationship with the listing agent as well. Have your agent call on your behalf, perhaps a few times, to establish and reiterate your interest, as well as keep in contact regarding offer deadlines and opportunities to enhance your existing offer. While the sellers may have whatever agenda and list of criteria they like, their agent has influence, and your agent has an opportunity to present you in good light and ensure that working with you would be a smooth and pleasant transaction.
At the end of the day, remember what I tell all my clients…if it isn’t meant to be, and you don’t win this one, it means that the perfect home is still out there waiting, and we WILL find it! When the time is right, everything will work out just as it should. If you are looking to buy this spring and are fearing multiple offer situations, give me a call! Yes, it can be stressful, but my job is to shoulder it with you and alleviate what I can.
Let’s find your fit!