In our current SELLERS MARKET, multiple buyer offers are common… and depending on the situation, can turn out to be methodical or MAYHEM; so…
HOW DO I COMPETE AS A BUYER?
There are two perspectives; from the buyer side and from the seller side:
Numerous strategies can be arranged through your experienced Buyer Representative, in an attempt to make your offer stand out from any others; some points to consider:
- Limiting or completely waiving any inspection or other due diligence
- Waiving the mortgage appraisal contingency (with confirmation up front from your lender)
- Using an initial Earnest Money Deposit (EMD) followed by another deposit, post-inspection
- Flexibility with the closing date or seller occupancy after closing
- Not charging the seller for occupancy after closing
- Not selecting more than one title company for both the lender and owner policies of title insurance; in other words… “we’ll use the sellers title company for everything”
The seller has all the control, but it is critical for any seller to receive guidance from their experienced Listing Representative. A line has to be drawn somewhere, both ethically and professionally (for example; if there is an offer receipt deadline, and offers continue to post after such deadline).
Here again, numerous strategies can be arranged through your experienced Listing Representative… the intent to ethically, legally and professionally acknowledge all submitting agents offers, while attempting to negotiate the best price and terms for the seller; typically on the fly… with some points to consider:
- The lender itself, and type of financing
- Do we have an actual mortgage pre-approval letter, or simply a prequalification statement?
- The buyer down payment and earnest money deposit structure
- The contract itself; is it concise and complete, or ambiguous… incomplete or sloppy?
- In a multiple offer situation, an experienced Listing Representativewill also be able to negotiate on behalf of the seller on the fly, requesting offer re-submissions or revisions as needed before presenting to the seller
- Not interpreting ANY buyer agent verbal comments or changes as legitimate unless in writing
I am only touching on these perspectives, perhaps to be broken down in future blog posts… but any versions of these strategies can and should be employed by buyer and seller agents alike; even in the absence of other offers. A key takeaway is that; in the heat of the moment and when decisions may have to be made verbally… that the party making the verbal statement will in fact honor and abide by the conditions of that statement, or risk their reputation as an honest and ethical agent.
In these multiple offer situations, an experienced agent (representative)will outshine the mediocrity so prevalent in today’s market… while balancing trust and integrity from both sides of the transaction. Your “sister’s best friend who just happens to have a real estate license and is engaged to your neighbor’s cousin” isn’t likely the choice you’ll want to make, to represent you as a buyer or seller in this market 🙂
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