Multiple-offer situations occur when a seller receives more than one offer for their property. They usually happen when there is a high demand but a limited supply of homes in that area’s market. In these situations, the seller’s listing agent will notify all of the homebuyers who placed an offer on the property that they have two to three days to submit their highest and best offers.

As a homebuyer, there are three things you can do that will improve your offer and increase your chances of getting the seller to accept it despite the competition:

“If you can do these three things, you will have a competitive edge over the competition in a multiple-offer situation.”

1. Accommodate the seller. Find out what the seller’s needs are so that your offer can accommodate them. Most of the time, the seller’s needs go beyond price—for example, does the seller need time to move out after closing? If you know that, you can write your offer to suit their needs, making yours more attractive in their eyes. 

2. Simplify your offer. Going in, a lot of buyers try to negotiate repairs, closing costs, and other parts of the deal with the seller. In a multiple-offer situation, never do that—keep your offer simple. Focus on the price, down payment, and closing date of your offer. The reason to keep it simple is that your objective isn’t to get a good deal, but rather to secure the contract. Once you’ve done that, you’ll have up to 10 days to negotiate all those items anyway. 

3. Have a true pre-approval. Most buyers going into a transaction will ask for up to 21 days to complete the third-party financing contingency. Essentially, buyers are asking the seller for up to three weeks of time so they can speak with their banks or mortgage lenders about getting a loan for the home. If you could ask for a smaller period of time to complete this contingency, that will help you to stand out from the crowd of other buyers. If you get a pre-approval from a lender before you make an offer, you’ll already have submitted all the necessary documents and information to them, meaning that you’ll be able to shorten your timeframe. Sellers will appreciate a reduced contingency period.

If you can do these three things, you will have a competitive edge over the competition in a multiple-offer situation.

For any questions you have about this topic or anything else to do with real estate, don’t hesitate to reach out to me. I’d love to speak with you.