San Diego Buyers | How To Win a Bidding War | Multiple Offer Know How

San Diego Buyers | How To Win a Bidding War | Multiple Offer Know How

tug of warBidding on a Home with Multiple Offers?

First of all, if you are bidding on a home then we should know about it! But if you are planning ahead, here are Nicole’s Top 10 tips to get your offer accepted:

1. Write a Love Letter to the Seller, tell them why you love their home and are the most qualified to purchase it.
A Seller has no idea who you are. Even if your agent explains how badly you want the home or how perfect it is for you, there’s no telling if that information will be passed along to the powers that be. When you write your “love letter”, print it and sign it and have your agent scan it in as the cover page to the offer. This way no matter how the information is transferred or presented, your letter will have a better chance to be seen.

2. Price isn’t always the deciding factor, find out the seller’s motivation and what’s important to them so that you can tailor your offer terms accordingly.
So your offer didn’t get accepted and then you see the property sold for LESS than what your bid was! How could that happen?! Sometimes price isn’t the only important factor a seller is looking at. They can need more flexibility with timelines or may even need to stay in the property for a little after closing on a rent back. Whatever the case may be, make certain your agent is asking the right questions to get to the bottom of the seller’s motivation. It might help to negotiate you a better deal!

3. When you are given a multiple counter, accept with an addendum increasing your price.
This is the number 1 way I have gotten my clients offers accepted in a multiple counter situation. When a Seller issues a multiple counter it typically means that all interested parties are going to accept and then it’s a roll of the dice on whom the seller will select to open escrow with. Discuss value with your agent and make sure the property is worth a slightly higher value so that you can determine what your increase will be. Sometimes you can win the bidding war with less than $5,000!

4. Remove an appraisal contingency.
This can be tricky, so professional advise from your local agent is key. If you are confident in the value of the property then this will assure the seller that you are willing to close. If the appraisal doesn’t come in at the purchase price, then you will have the opportunity to pay the difference between appraisal and value in cash, or if you are obtaining financing and have a loan contingency, that loan contingency may require a certain value for you to be qualified for the amount you are requesting. Several different factors can come in to play and it’s best to discuss this with your agent regarding your personal situation.

5. Have your lender call the listing agent with confidence in your approval.
It always helps to have your loan officer contact the listing agent to assure them that you are well qualified. The listing agent also wants to know that the loan officer will be easy to communicate with and keep them well informed on your approval process throughout the course of the escrow.

6. Have your agent “win over” the listing agent, build a rapport.
Having a good relationship between cooperating Brokers is key. Sometimes this open line of communication can make or break a deal for you.

7. Write in an “as is” clause, so the seller knows you won’t nickel and dime them for repairs or credits.
This is important. Depending on the price the seller will want to know that you are NOT going to supply them with a laundry list of items to fix after an inspection. Understand that selling a home is just as stressful as purchasing one, and every seller believes their home is worth more than what they eventually sell it for. If you can hire your own handyman after the close then it’s just better to alert the seller up front so they know you will be easy to work with.

8. Mind your manners. Make sure your agent is courteous from scheduling showings to locking up afterwards.
This goes along with building a rapport. The seller will remember if your agent left all the lights on or the doors unlocked after your showings. I’ve seen it all from buyers grabbing food in the kitchen to letting the beloved family cat out! Buying and selling real estate can be an emotional process, you want to tread lightly depending on why the home is selling in the first place.

9. Make sure your agent presents a clean & organized offer, calling or presenting in person is helpful.
I’ve seen it all on the listing side. From a 30 individual page document scan to a fax that had to be pieced together. If your agent does not present a clean offer it will alert the listing agent and seller that your escrow may not be clean either. ie, if your agent cannot figure out how to send an offer, how in the world are we going to get through all of the paperwork involved in a purchase transaction?! Also be certain your agent doesn’t just email or fax an offer without notification. A personal call or hand delivery will make you stand out amongst the crowd.

10. Don’t bully the listing agent on price or submit comps to justify your lower offer when there is more than one offer on the table.
If you are in a bidding war, the last thing a seller wants to see is why you are coming in lower than the rest of the bids. You may as well not waste time in putting an offer together in the first place. The only time you should submit comps with your offer is if you are the ONLY offer on the table and the property has been on the market for a long time. Even then, price is not necessarily the reason a property has been on the market for longer than the normal absorption in an area. I’ve listed several unique homes that sold for more than their original offer to the right buyer at the right time.

If you would like to find out more about writing an offer, contact me to discuss!

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