Multiple Offers - How to Make Sure You Get the Winning Bid in 2023
It’s sometimes discouraging to realize out that multiple offers are being made on your dream property. You might be worried that said property will slip through your fingers after months of searching. It’s important to not get stressed out during these situations—that can make you desperate. While there’s no way of assuring that a seller will pick your offer, there are ways of making it look more enticing. If, however, a seller decides to go with a different buyer, it won’t be hard to find another home that meets your needs.
Here are our best tips to win, even when multiple offers are pouring in.
First, whether or not you expect to be facing multiple offers, we suggest getting a pre-approval for your mortgage. That way, if multiple offers do start to pour in, you know how much you can afford to bid.
So, if you are ready to get pre-approved in order to compete against multiple offers, click the link below for a free strategy call today.
Work with a good real estate agent
Working with a good real estate agent can help you with many aspects of the property buying process. Though it might be tempting to do everything on your own in order to save money, it’s usually best to have a professional help you. Real estate agents will help you find the perfect property, determine a good bid and take care of all the confusing paperwork. They could also help you find potential properties that you’ve missed.
When it comes to handling a buying situation with multiple offers, a good real estate agent can help you negotiate your offer. Real estate agents are used to these situations and have the right knowledge and experience to convince a seller to take your offer. They can also give you the best advice on how much to offer as an initial down payment.
Consider a higher bid
One of the best ways of winning a bidding war against multiple offers is, of course, offering more money. In most cases, it’s a good idea to give your best offer initially. This can set you apart from other bidders as it shows you’re truly serious about the property.
Offering a large down payment upfront will also give you a good idea of where the seller stands. If they keep asking for higher bids, then it might be time to focus on another property. If you have more money to offer, then it’s up to you whether a higher bid will be worth the cost.
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Speak with the seller about their wants
It’s always a good idea to stay in touch with the seller, be it directly or through your real estate agent. Building a relationship with your seller is the best way of staying in their minds. If you’re planning to renovate and rejuvenate the property, share this information with the seller. A well-written letter that lists the reasons for your interest in their home may prompt a seller to accept your offer over multiple offers made by other investors.
Some people swear by adding a letter with multiple offers, while others say it doesn’t help much. This is up to you. Meet with the seller and determine whether a nice letter added to the offer would be beneficial. If you decide to write a letter, then be sure to consult with your real estate agent. They may have helpful information about what most sellers want to see in these letters.
Be flexible
In some situations, a flexible closing date may help you secure your new property. The seller, for example, might need a certain amount of time to move out before you take over. If you let your seller know that their time frameworks for you, then they might be more willing to offer you the property.
Get pre-approved
This is one of the first steps you should take before looking at homes altogether. A pre-approval allows you to know how much you’ll be able to borrow from a qualified lender, thus telling you how much you can spend on a home. Having your pre-approval done will show the seller that you are serious about buying their home and aren’t exaggerating about your offer.
There are many places you can apply for pre-approval, including banks, credit unions, insurance companies, loan companies and more.
We recommend LendCity Mortgages as they specialize in working with investors and have an unlimited rental property roadmap. They can be reached at 1-519-960-0370.
LendCity will take several things into account when determining your pre-approval rate, including your amount of debt, assets and income. They will also require several documents, including proof of employment, identification, your address, pay stubs and bank statements. Once they have all the information needed, LendCity can determine an accurate interest rate. This information will also help them determine for which loans you qualify.
These days, it’s extremely quick to apply for pre-approval as LendCity has an online application. Get pre-approved can also help you determine the perfect down payment amount. Once you’ve been pre-approved, it’s best to let your real estate agent know.
Avoid asking for more than is offered
You might be tempted to ask that repairs be done on a home before you put down an offer, but this usually isn’t a good idea. A buyer who asks for things that aren’t initially offered may be looked down on by the seller. Have your real estate agents determine any repairs that might bring down the cost of a home. If these are minor repairs, then it’s best to take care of them on your own.
Have a good attitude
Having a good attitude is important during every step of the buying process. Buying a new property can be stressful and there might be hiccups. It’s important to not get bogged down during these situations. A good attitude will also help the seller remember you.
Know when to step back against multiple offers
Even if the home you’re looking at seems perfect, there always other, similar options available. You don’t want to end up spending too much on a home, then not having anything left for repairs and other expenses. You’ll usually need home insurance as well, so it’s important you don’t spend everything on your down payment.
Check with your real estate agent if there’s any way to make your offer more enticing, but if not, move on to another property. You may even find that this new property is better suited to your needs.
Once again, whether or not you expect to be facing multiple offers, we suggest getting a pre-approval for your mortgage. That way, if multiple offers do start to pour in, you know how much you can afford to bid.
So, if you are ready to get pre-approved in order to compete against multiple offers, click the link below for a free strategy call today.