Multiple Offers on a House II - 5 More Tips How to Win
With all these crazy multiple offers being submitted in this current real estate market, we have come up with 5 additional multiple offer strategies and we’re starting now!
We already made our first video right here called Multiple Offers on a House - 8 Tips How to Win, however since then we have come up with 5 more tips and wanted to share those with you here. Multiple offers aren’t for the faint of heart at any time, however in this market right now, buyers can certainly use all the help they can get.
Tip #9 - Insurance
If you remember tip #1 was making your offer as clean and uncluttered as possible. We talked about decreasing the number of subjects as best as you can by not including subject to Property Disclosure Statement and Title Search unless there was a reason those were necessary. Well, how about the insurance clause? This is another common clause and a necessary clause, as if you’re getting a mortgage, the mortgage lender won’t release funds until you have insurance in place. However, it’s easy to find out if you can get insurance on the property - make the phone call! Ask the insurance company if they will give you insurance on your house. The insurance company won’t bind your coverage more than 30 days out anyways, so all you’re really doing with that subject in most cases, unless you’re buying the house in less than 30 days, is asking the insurance company if they will sell you the insurance at some point in the future. That is something that can be done prior to an offer.
Tip #10: Home Inspection
If you need or really want to make your offer subject to a home inspection - which is always recommended - however what if you could do the inspection in advance? That would make your offer much stronger! Something to consider, if you have the time to do so.
Tip #11: Keep it Short
I realize that most aren’t able to or shouldn’t write offers that have no subjects. If you are one of those people who absolutely need financing or home inspection or legal advice or whatever it is - then at least keep your dates short. An offer with conditions that are due two weeks from now is a lot less attractive than an offer with conditions due off in 5 days. Well, you say: “how can I do that when I need financing, and the bank says I need two weeks?” Well, first of all, get a different lender - go to a mortgage broker who specializes in placing mortgages versus someone at your bank who looks after mortgages in between the other 5 duties they are responsible for. Secondly, as we discussed in our first video, make sure all your ducks are in a row before you make the offer. Get those tax slips organized. Get that employment letter in advance. Don’t wait until after you have an offer! That will save you a week right there. And then get a letter from your banker to prove that you are good to go. Having an offer accompanied by a letter from the mortgage broker is very powerful. Same with a home inspection, if you weren’t able or willing to do one in advance, then have it booked before your offer is submitted. You can always cancel. Keep those dates as short as possible to improve your offer.
Tip #12: Size Matters (again)
We talked about your offer price being super important and your deposit. However, we didn’t talk about your down payment. Why not add to your financing clause how big your down payment is? Telling the Seller how much money you have in your jeans to make this deal happen gives that Seller confidence that you can actually buy this house. All other hinges being equal, if one Buyer has a subject to financing and that’s all it says, And your offer states subject to financing with a $200,000 down payment. That could be what deals the deal. You may not win against an all-cash offer still however it does make your offer much stronger.
Tip # 13 - Be Available.
We talked about writing a letter or taking a video humanizing yourself for the seller. While that’s a great idea, and something that still should be done, if you’re in town - go with your Realtor to the offer presentation. Be there in the driveway waiting to make a quick decision. Then your Realtor can say: “Counter my buyer’s offer and I have them right now in the driveway waiting to respond!” Or if you’re not in town, at the very least ensure you are on speed dial on the other end of the phone waiting for your Realtor to call. If the Realtor can say: “I can get back to you in 5 minutes if you counter my offer” - maybe they will, even if your offer isn’t the best.
Now you have a total of lucky 13 tips to win that multiple offer. And please, whatever you do - don’t forget to have an experienced Realtor on your side. Someone who knows how to play this game, because experience will give you your best chance of winning that next multiple offer battle. I can’t stress enough how important this is.
If you are ready to get experience on your side, please give RE/MAX Vernon Salt Fowler a call - we have well over 100 years of combined real estate experience and we can help guide you to the finish line in your home buying journey.