Here are three tips for better offers in multiple-offer situations.
Many buyers are getting used to the fact that they are stepping into a multiple-offer situation every time they write an offer. It’s simply the reality of the market we’re in right now. Though I can’t say when, the market will eventually balance out, but until then, here are three things to consider when you are in a multiple-offer situation.
“Sellers are sometimes afraid of an overly inflated price.”
1. Your deposit. In Ohio, deposits aren’t super high. I’ve seen other states where the deposit can be as much as 10% of the purchase price. In Ohio, I’ve seen $500 to $1,000. It’s a great area where you can make your offer stand out to sellers. If you go to $2,500, this is going to let the seller know you have no intention of backing out of this offer. The larger that deposit, the more you are telling that seller that you are serious about purchasing their house and sticking with it till closing. Keep in mind that your deposit comes back to you at closing, so it just comes off the total amount that you have to bring anyway.
2. The price. Sellers are sometimes afraid of an overly inflated price, fearing that their homes will never appraise for that amount. They’re also nervous that buyers are just willing to say whatever number in order to secure that deal. I just had a multiple-offer situation this past weekend where we had 11 offers on a property and the homeowners ended up choosing an offer that was $15,000 less than the highest offer because they felt that was closer to where it should be priced and that they wouldn’t have any appraisal issues at that lower price.
3. Your lender. Out-of-state lenders may not understand our market, so they may give sellers poor advice or leave them with unanswered questions. There are so many great local lenders here who specialize in mortgages, so it’s a safer bet to work with one. Doing so will make your offer stand out, especially if it’s up against somebody else that nobody here recognizes.
I know this market is super crazy right now. Reach out to us if you need anything at all, whether you’re selling a house, buying a house, or investing. We look forward to speaking with you. Have a great day.