You’ve been house hunting for weeks when you come across a home that’s been listed for a couple of months. Figuring it might be overpriced, you decide to take a look regardless, and fall in love with it. You put in an offer, thinking you can get a great price for it as it’s been on the market for a while. But, just as you’re starting to think of the renovations you’ll do, or how you’ll decorate the master bedroom, your buyer’s agent calls and says there are now multiple offers on the table. You wonder where the buyers came from, as there’s been no activity for weeks.
“Having multiple offers come out of the woodwork on an older listing is a frequent occurrence,” says Jayne Woolcott, sales representative, Re/Max Escarpment Woolcott Realty Inc. “People often want what they can’t have, so as soon as they hear an offer is being placed on a home they saw a few weeks ago, they have to have it and put in a competing offer.” “The trick to succeeding in a multiple offer situation is to stay cool, calm and collected and stick to your parameters so you don’t have any regret with the situation, whether you win or lose.”
See below for Jayne’s top tips for succeeding in an offer competition:
Write Your Best Offer
In a multiple-offer situation, don’t hope for negotiation. This is the time to put your best foot forward, so offer your best price. This may include having your real estate agent conduct a Current Market Assessment, as some properties are intentionally priced lower to entice multiple offers. This means that even if you offer over list-price, it may not necessarily be over market price.
Write A Letter to the Sellers
While sellers are often dollar-oriented, a few can be swayed to look at a lower offer if there is a ‘Seller Love Letter’ included. This is a tool that buyers can use to show the sellers their affection for the property. Whether it’s sharing their dream of building a family in the home or how it’s the ideal place for the next phase in your life, it may be just the trick if the competing offers are similar.
Do a Pre-Offer Home Inspection
When buyers find themselves in competition, they often cut out conditions like home inspections to make a more attractive offer. However, without this condition, they can be opening themselves up to major issues in the future. “A pre-offer home inspection gives buyers a piece of mind as they can be made aware of any issues prior to making an offer, and don’t have to include this as a condition in their offer,” says Woolcott.
If you’re thinking of purchasing a property this summer, contact The Woolcott Team at 905-332-9223 for personalized advice on how to succeed in a multiple offer situation.