Dear Kari,
My husband and I found the house we wanted to call our own.
We asked our Realtor how long it had been on the market and the answer was six months.
We thought this is great and we made a low offer. Then our Realtor called us the next morning and told us there was another offer that the sellers just received.
How do we get our dream home?
Answer:
Multiple offers in today’s market may not be expected, yet this is occurring for some happy sellers.
When establishing value of a home, it is not the Realtor’s listed price but how much money a buyer is willing to pay and how much money the seller is willing to accept.
A multiple offer situation is very unsettling for any buyer because you think that someone else is going to live in your home while you are dreaming about adding the pool you always wanted in that large back yard.
Whether you are the first or third offer, you still may have an opportunity to change your offer before the seller signs one.
Know that the seller may not just be looking for the highest price written at the top of the offer page.
Often, sellers have many needs beside the highest price — they may want a quick closing, a rent-back situation, quicker contingency time frames or they may not want to give up the hot tub.
The seller may not find that the buyer is well prepared with their financing and so on. Remember, just because there are two offers does not mean that full price is on the table from any of the offers.
The sellers will be evaluating all hidden costs in each offer and asking their listing agent for their bottom line of each one.
Some tips on how to win the sellers over:
• Offer to put down a strong earnest money deposit check up front.
• Get pre-approved for a loan and show the seller the bank letter.
• Good amount of down payment money.
• Offer the sellers two days after closing to move.
• Write your best offer.
• Shorten your time frames for inspections.
• Do not ask the seller to pay your closing costs.
• Pay for your own home warranty.
• Be human and realize the home is the pride of the sellers.
• Write a brief letter to the sellers saying why you want their home.
• Have your agent ask what is most important to the sellers.
• Don’t ask the seller for any personal items in the home or yard.
• Decide how much you want the house.
• Offer to pay the termite/pest control inspection.
• Shorten the time frame to approve the seller’s disclosures.
• Don’t ask for silly things to be fixed.
The seller is looking at their “net” proceeds from the sale, which is determined by subtracting the sellers’ closing costs, commission, outstanding loans and all other possible costs.
This is where the seller may actually be netting more money from a lower offer amount. All the pennies add up to the net and bottom line.
There may be a point when it is wise to throw in the towel and move on to another home.
Some sellers in a multiple offers situation will make unreasonable demands.
Ask your Realtor to make a market evaluation and pay close attention to the comparable homes that have sold and closed escrow within the last two months.
Rely on your Realtor’s knowledge and ask for his or her opinion before making your final decision.
Kari McCoy, CRS, has been a Realtor for more than 25 years and owns the Kari McCoy Group, Residential Real Estate, at Coldwell Banker. Call her at (916) 941-1540 or e-mail her at sold@karimccoygroup.com.
