How to Handle Multiple Offer Situations as a Buyer
Today we're going to talk about winning multiple offer situations as a buyer. As a seller, you've already won because you have multiple offers to choose from. As a buyer, the idea is to secure that home at the lowest possible price with the best possible terms.
We've devised a seven-step strategy to get this done. In our board of Realtors, we're seeing 2 out of 10 multiple offer situations won by the average agent. Here at the Perna team, because of our training and expertise, we are winning 7 out of 10 multiple offer situations.
First up, it's important to establish rapport with the other real estate agent. We start building that relationship as fast as possible, because the more comfortable the seller's agent is with us, the more likely they are to recommend our offer to the seller. When an offer comes over with no phone call or explanation in the email, it makes us a little uncomfortable. Dump-and-run offers are not looked at as closely as offers where rapport and trust have been built.
Second, we ask our lender to proactively reach out before the offer goes over to explain how well qualified our buyers are. One of the key concerns of the seller in a multiple offer situation is will this offer actually make it to the closing table? Mortgages have gotten a little bit easier over the years as the market has relaxed, but there are still more restrictions than there were 10 or so years ago. We want our lender to reach out and say not only are they pre-approved, but they are pre-underwritten. This provides a sense of comfort to the sellers.
We also recommend writing a letter. A lot of homeowners want people they like and trust to take over the property. A letter and maybe a picture of the family will help out there. Instead of being a nameless, faceless buyer, the seller can identify with you. This will set you apart from the other offers.
There are four additional tactics that we consider proprietary. It's not going to be the price that gets the multiple offer every time, and the terms are important, but the most important thing is trust.