Well. This week alone I have had two multi offer situations on properties I am marketing. Maybe there is some pick up in the market. Maybe it’s just by chance. Whatever the reason it is important that both the Seller and Purchaser know what this means for them.
Firstly for the Seller…. What an opportunity. Your property has not one person but two, or more people wanting it. This can only be good for you. The purchasers are all fighting against each other to secure their spot as the home owner of your property. This will usually mean that the offers that are presented forward will be cleaner and probably better than if there wasn’t a multi offer.
When this does happen the seller needs realise that this is the market talking and look hard at the agreements put forward. Because these situations are the market talking straight at you and is likely to be pretty close to where the property is worth. In any case your agent will give you advise and be your best guide to the strength of each offer. In our office we have standard procedure that we have to have a 3rd party such as the manager present the agreements as a multi offer, so that the whole procedure is transparent.
Secondly for the purchasers involved it can feel like a stressful time. You have to think about how much you want the property and think about maybe what the other parties are doing. In any case the offer you put forward needs to be your best offer. As negotiations are effectively nonexistent and you may not have another opportunity to present a better offer forward.
In any case let’s consider a few ways to improve and strengthen your best offer:
· First of all, don’t panic! Try to keep your emotions under control and use your common sense. Do you really want or need this property? Or…should you keep looking? But, if this home is the one for you, then let’s get busy and make your offer stand out from the crowd.
· Make sure your offer is as “clean” as possible. This simply means that the fewer contingencies, the better. Be sure to have your financing in order. Submit a letter with the offer…from the lender stating your qualifications. Perhaps you should also conduct your home inspection beforehand, clearing that possible contingency.
· Can you be flexible with possession? It might sway the seller to your offer if you can give him/her the time they need to move or if you fit into their needs better.
· Make your best offer, but be careful about offering a price that is too high for the area. Most appraisals will take care of an inflated price, but be careful if you’re paying cash!
· Offer some other item of value. I have heard of many cases where purchasers have included gifts or incentives into their offer. One example I had a few months back was a purchaser run a web development company and the seller had several websites for his business. The purchaser offer two years free webhosting and Service to the seller as part of his offer for the property.
· What do you love about the home? Sit down and think about all the things you love about it. Then write a personal letter to the seller…telling them what the home would mean to you and your family. Many times, the seller will have put a lot of themselves into the home…and want to know that the next owners will love it as they have!
These are just a few suggestions, but there are many more possibilities. Much depends on the particular situation. But take it seriously and you will get a good result.