How Buyers Can Successfully Compete in Multiple Offer Situations

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Welcome back to the second part of our series on how to handle multiple offers in the surrounding Irvine area. As a buyer, how can you compete and increase the likelihood of getting your offer accepted in a bidding war?

"Reduce the contingency
period at all costs."

Of course, sellers will the take the price into account first. However, it’s not the only thing they look for. Although sellers are looking for the highest bidder, they also want to make sure the buyer can close in a timely fashion. As a buyer, it’s your job to assure the seller you are that buyer they can rely on. Here are six useful tips to remember when submitting an offer.

1. Provide detailed documentation on the source of your down payment.
2. Reduce the contingency period at all costs.
3. Get pre-approved with a local, reputable lender and provide the pre-approval letter, including your FICO scores and your assets.
4. Inquire about the seller’s motivation through your agent, such as what they’re looking for or why they’re moving.
5. Get personal and include a family photo with your offer.
6. Be flexible with the closing date.

If you’d like more tips, please reach out. Give me a call or send me an email. I’d be happy to talk! I can answer any and all of your questions as well.

How to Handle Multiple Offers As an Irvine Seller

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation 

Call me at 949-552-7653 for a FREE home buying or selling consultation

We are in one of the most active real estate markets that we have seen in recent years. Right now, it is very common to be involved in a multiple offer situation when buying or selling. As a seller, there are a few things you need to do to select the best offer.

Obviously, the first thing you should look at as a seller is price. The higher the price, the better your bottom line is. However, price is not the only factor you should consider. You also need to evaluate the terms and conditions in each offer in order to determine which is highest and best.

For instance, one condition you should pay attention to is financing. There are many different types of loans: government loans, conventional loans, and other programs. Pay attention to loan-to-value ratios, down payments, and the buyer’s ability to obtain a loan.

If a buyer is obtaining a loan from a local lender, you can verify the information consistently. It’s more difficult to keep track of the information when a buyer uses an out-of-state, online source.

You also need to evaluate the buyer’s source of funds. Find out if the buyer’s funds are viable and readily available, or if the funds are contingent upon the sale of the buyer’s home. The buyer may even need to transfer funds from another country.

 

"Price is one of the most important factors to consider."

Pay attention to things like inspections, appraisals, and loan contingencies. The buyer will ask for a certain amount of time to satisfy these conditions, meaning they will have a set number of days to order the inspection and the appraisal. As a seller, it is advantageous to you to have a shorter time period in order to reduce your risks.

You should also consider whether the buyer is able to close escrow at a time that is agreeable to you. Maybe you need to close quickly, or maybe you need some time to find your next property.

Finally, figure out if there is a way to add value to the offer. For example, you might need a rent-back. You could also get the buyer to remove some - or all - of the contingencies. That way, you can sell your home without needing to worry about the inspection or appraisal.

Look out for Part Two of our series - we will discuss how to handle multiple offers as a buyer. If you have any questions in the meantime, give me a call or send me an email. I would be happy to help you!