Here’s our best advice for homebuyers competing against multiple offers.
Multiple-offer situations are becoming more and more common for homebuyers in this market. Because things are so competitive, today we have three great tips to help set you up for success if you’re thinking about buying anytime soon:
1. Make a strong initial offer. Include a pre-approval letter from a lender because a seller likely won’t entertain your offer without one. Don’t try to lowball the seller with your offer, and keep the closing period under 60 days if possible.
2. Include an escalation clause. This clause says that you would be willing to pay a certain dollar amount more over the next highest offer up to a price. Using a $500,000 home for example, you could make a full-price offer of $500,000 with an escalation clause that says you’ll go $2,000 over the next highest offer up to $510,000. If the seller gets another offer that’s $505,000, your escalation clause will be triggered and your offer goes up to $507,000. If the next highest offer is $510,000 however, you’re in a trickier position.
“Don’t try to make a lowball offer because it won’t work.”
3. Send a personal message to the seller. You can write a letter or make a video letting the seller know how much you like their home, how you want to make it your own, and why you want the home. This goes a long way with sellers and we’ve had clients win out against multiple offers because of messages like this.
These are just three tips to win in this market. If you have any questions or would like more home-buying advice, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.
