Whether you’re buying or selling a property, multiple offers in real estate can be difficult to navigate. However, there are simple tips to follow that help turn things in your favor.
Tips for Sellers:
- Define success: Have a clear goal in mind and continuously work towards that goal. For example, are you more concerned with meeting a certain timeline for the sale of your home, or does getting the highest price matter most? Before listing your home, talk with your realtor to determine the scenario that will create the least amount of stress and stick to the plans.
- Dig deep into the numbers: It’s important to keep in mind that the best offer isn’t always the highest offer. It’s imperative to look beyond that top number and consider other important factors like how much the buyers are putting down and if they have enough equity to close the deal.
- Look beyond numbers: I know this sounds counterintuitive, but depending on your end goal, contingencies may hold equal or even more weight than the price. Is the buyer willing to waive the appraisal, financing, home sale, and inspection contingencies? These contingencies can significantly slow down the selling process, so if timing is your priority, this is something to strongly consider.
- Be nice, be transparent: When you try to help people, good things come back to you in the end. This is how I conduct business on behalf of my clients, and it should be an industry standard. Emotions are bound to run high during a real estate transaction, but when you work with people who value transparency, it greatly reduces the stress that’s often synonymous with real estate deals.
- Pick an experienced agent with a stellar reputation: In a very competitive market in an industry that isn’t synonymous with integrity, it is critical to have a really good agent to agent experience. When work is done harmoniously with the agent on the opposite end of the deal, and there’s a trust established where they know there won’t be any deceptive business, everyone moves forward trying to do the right thing. The result? Everyone wins. One way to know if your agent is respected is to observe the responses while visiting open houses. If you mention you are working with an agent and the host of the open house responds with “I love Maryanne,” you know you are in good hands.
- Take a breather: Buying a home is overwhelming. Bidding wars are exhausting. Sit down and pause and consider exactly what you want. Don’t put yourself in a position where you want to “win” the house so badly that you make concessions on the terms that make you uncomfortable.
- Put your best financial foot forward: Determine the highest offer you can make and put forth a $5,000 non-refundable initial deposit to send the message that you’re serious, and you want “this” home. Also, consider putting at least 20% down. Large down payments appear attractive to the seller because it gives them confidence that you are a solid buyer. Be proactive and have your lender call the listing agent to reiterate the strength of your finances.
- Be flexible and easy to work with: Flexibility with your closing date can be very appealing to sellers. You may also want to think about waiving the appraisal and honor your good faith offer–in other words, if the house appraises for slightly less, honor your initial offer amount. Another way to stand out is by waiving inspections after determining risk vs. benefit, with the exception of structural or environmental issues. Finally, if you’re selling a home as well as buying one, consider waiving the existing home sale contingency if you can. Compass’s Bridge Loan service can facilitate the opportunity for you to position yourself to bridge the gap.
