Tips For Competing In Multiple Offer Situations

The real estate market in Greater Columbus is officially in “Ludicrous” mode!

Most homes that are in good condition and priced right are getting multiple offers.  As a result, many buyers are missing out on one, two, or even more homes before they finally are able to make an offer that is accepted.  The competition for the best home is extremely fierce and buyers are doing pretty much whatever it takes to win. 

There are several trends that we’re seeing (And utilizing in some cases) that buyers are using to win offers.  There are 3 basic strategies: 

  1. Make it lucrative
  2. Make it easy
  3. Make it emotional

Make it Lucrative

One strategy to make your offer stand out is to make it more lucrative for the seller than the other offers. Sometimes this means that you are willing to pay more than anyone else for the house – But “lucrative” doesn’t always mean that you have to overpay.  Lucrative, just means that you are giving a seller what they want.  The key component to giving sellers what they want is not complex, you just have to find out what it is that they really want.  How do you find that out?  This may sound simple, but if your agent just asks the listing agent, they are likely to tell them.  To some sellers, the highest amount of money is the most important thing, no doubt.  But to others, there are more important things to them, like being able to stay in the house after closing for a period of time, or not having to fix anything, or getting to choose the closing date.  It may be hard to believe, but many agents are not even asking the question, so by just having your agent ask, you can gain an advantage.

Make it Easy

Sellers have a few common fears and one of the biggest fears is that this is going to be a difficult and painful experience.  The difficult and painful part typically comes from the fact that if there are problems with the buyer’s loan, with inspections, or with an appraisal, then those problems become their problems and can throw their well laid plans way out of whack.  So how can you make it easy for the seller?  Remove the risk wherever you can. If you can pay cash for the house, do that.  If you are comfortable with not asking for inspections, do that.  If you are ok with the fact that an appraiser may not think that the house is worth as much as you do and you have the cash to make up any difference, do that.  All of these take the risk away from the seller and make it an easier decision to choose your offer. 

Make it Emotional

They say that logic makes you think, and emotions make you act (Wait, “Emotion” sounds a lot like “Motion”, coincidence?).  Depending on the seller, there may be a way to connect with them emotionally, and that might give you an advantage.  Some people write letters to pull on the seller’s heart strings and that can be effective.  Another way is to do some snooping, ahem, I mean research and find out if you know anyone that the seller knows, maybe on social media,  that you could ask to put in a good word for you, and that can be effective.  I have even heard of people noticing things in the sellers house that could give you a common connection, like a love of fishing, and dropping off a special fishing lure along with the offer, that could be effective.  The best part about making it emotional is that it doesn’t have to cost much, and it can be one of the most potent strategies.

In today’s market, you need an advantage to win.  The agents on our team are well versed in the strategies above and many more.   If you or anyone you know is even thinking about buying, selling, or investing in real estate, give us a call, we can help!  Helping You is What We’re Here to Do!

 

 

 

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