How Realtors can deal with Multiple Offers on a Home Purchase

Dealing with Multiple Offers on a Home Purchase

We are encountering many multiple offer situations in the market we are in.  This information will give you a leg up in the negotiations. It will give you an opportunity to set your offer apart if we find ourselves in a situation where we are competing with other offers.

Our first instinct in this situation is to offer OVER asking price, but this may lead to appraisal and financing issues.  Instead, if your clients really like the house and a lot of people are looking at it because the seller has priced it aggressively, you should be prepared to use one or more of these strategies to make your offer stand out:

1. Offer a large deposit. This proves to the sellers that you are serious and you’ll be less

Likely to walk away if little issues arise.

2. Get your financing pre‐approved and submit a commitment letter with the offer, so it is as strong as a cash offer.

3. Offer to buy a home protection plan warranty to protect both you and the seller in case of major mechanical failure. It will ensure the seller has no major expenses before closing should something break down.

4. Offer to pay $500 (or another amount) on closing towards the seller’s moving expenses. (ILO going over asking price)  They can use a moving company of their choice.

5. Offer to pay a percentage (1%) of the seller’s commission to their real estate agent. It doesn’t inflate the purchase price, but puts more money in the seller’s pocket.  (Not very customary but if the buyer is willing to go over the asking price – it makes no difference where that extra money is allocated)

6. The seller is responsible for paying title insurance; the buyer can offer to pay for it on the seller’s behalf. This will reduce their closing costs, putting more money in their pocket.

Chances are, none of the other offers you are competing with will include these incentives, so your offer will stand out head and shoulders above the others.