To win a multiple offer situation as a buyer in our Greater Milwaukee market, I have seven tips for you to follow.
In our current market, if you see a home you like that’s a hot property in a favorable price range, there could be multiple offers for it.
If you find yourself in this situation and have to compete with other buyers, here are seven things you can do to make your offer the best of the bunch:
1. Make sure the seller knows you’re qualified. The best way to do this is to get a pre-approval letter (not a pre-qualification letter) from your lender and submit it along with your offer for at least the mortgage amount or higher.
2. Submit a large earnest money deposit. A normal deposit in today’s market is 1% of the purchase price, so make yours 2%, 3%, or even 5% of the purchase price. If your offer doesn’t get accepted, you’ll get that money back anyway.
3. Find out from your agent what’s important to the seller. Do they prefer an earlier or later closing date? Do they want certain items excluded from the sale? Your agent can find these things out by talking to the listing agent prior to you making your offer.
4. Give the seller time to move. I understand you want to move in as fast as possible, but normal closings take about 45 days, so if you’re expecting them to be out in 20 to 30 days, that’s unrealistic unless it’s a vacant property.
5. Consider shortening or waiving some of the contingencies you have. For example, instead of waiting two or three weeks to do a home inspection, do it within seven days. If you think the property is good enough as it is, consider waiving the inspection altogether. The fewer contingencies you bring, the better chance your offer has of being accepted.
6. Let the seller know you love their house. I suggest writing a brief letter to the seller outlining why you love their house and why they should pick you to be its buyer. And remember—be sincere.
“MAKE YOUR FIRST OFFER YOUR HIGHEST AND BEST ONE.”
7. Make a good offer. Make your highest and best offer now because you may not get countered. Excuse the listing price and have your agent do a comparative market analysis—sometimes properties are priced below market value, and you may have to offer thousands of dollars more to get that property.
If you have any questions about getting your next home in today’s competitive market, don’t hesitate to reach out to us. We’d be happy to assist you.