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Help in a Market Where Multiple Offers is the New Normal

Dated: April 19 2022

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Multiple offer situations are challenging to navigate, especially in a buyer's market with low inventory and several buyers bidding on the same homes. Multiple offers can be dealt with in a number of ways by sellers and buyers. Multiple offer situations are most common in hot real estate markets (when there are more purchasers than available homes) or when a highly coveted property is put on the market. Before you get or make an offer, think about the risks you might face in a multiple-offer situation and speak to a real estate agent about them. The various bargaining methods you can use in multiple offer negotiations have benefits and drawbacks for buyers and sellers. Here are six ideas to keep in mind to help you navigate the best possible offer whether you are a seller or a buyer:

Reasonable Pricing Matter When Selling Or buying in a Multiple Offer Situation

Buyer:

When you're buying a property with multiple other offers, it's crucial to start with the best offer. In a seller's real estate market, a low offer may offend or raise doubt in the seller's mind, and they may think that you are not a serious buyer. Research the best and highest offer that you can afford. Use your agent's expertise to help you make a strong price offer that the seller can't refuse even if there are multiple offers.

Seller:

When you are a seller, you should be looking for the best offer, but you should also look for a buyer who is willing to afford the closing and other property buying charges. There are a few more things that could boost the possibilities of an even better offer from a buyer:

• Reduce the duration of the option (due diligence) time. This way, the buyers who are not serious will opt-out.

• Offer the buyer a courtesy leaseback. This will help you solidify the buyer, and you will earn his trust.

• Provide a Waiver of the home warranty that will further convince the buyer that you are selling the right property to them.

These simple things can further help you get the best price for your property when multiple offers are the norm. In fact, the offers may be even more than what's trending in the real estate market around you.

Make Sure Your Finances Are in Order

Buyer:

Conduct a thorough budget analysis with your Real estate agent to determine how much money, option (or due diligence) fees, and monthly mortgage payments you can afford. Before starting the property buying process, make sure you can afford the property with the closing costs because sometimes the buyer has to afford the charges. And try to put down a higher down payment. This can help you become more competitive with your offer and give you more benefits when the seller is getting multiple offers.

Seller:

Before beginning the property sale, recommend your buyers to your preferred lender for pre-approval. Encourage your buyer to be pre-approved as quickly as possible after establishing a rapport with them. Otherwise, their offer will be weaker, and they will be wasting your time. If your buyer is financing, discuss their willingness and ability to put down a higher down payment. This can help them become more competitive with their offer and give you more benefits when navigating multiple offers.

Keep The Channels of Communication Open

Buyer:

The most important component in determining whether you get the property or not is the communication between you and the seller. While some sellers are solely concerned with the best price of their house and their bottom line, others simply want to get to the closing as quickly as possible. So, your communication with the seller should be crystal clear. And remember to make on-time payments. This step helps you make a good image in the seller's mind who has multiple offers for the property.

Seller:

As a seller, the most important component in determining who gets your property is the communication between the buyer's agent, the loan officer, and the listing agent on the other side of the transaction. While some buyers are solely concerned with the sale price of their house and their bottom line, others simply want to get to the settlement and move in as quickly as possible. So, communication will help you navigate and select the best offers for your property when you are facing multiple offers.

Play For the Long Haul

Buyer:

As a buyer, patience is the key, but when the property has multiple offers. Patience can go both ways; it can get you the property by eliminating other competitors that weren't serious, or you might get late, and the property might get sold to some other buyer. So, the key here is to research your seller and the property and then decide where to go with the patience game. Because sometimes, properties get multiple offers, but no one buys or closes the deal. In these cases, you might even buy the property cheaper than the initial price offers.

Seller:

Don't give up on your buyers if their deal falls through—and don't let them give up either. Continue to set market expectations for them and work with them toward a common goal: closing with a better price on your property. Make your property your buyer's necessity. Check-in, send recommendations and demonstrate your skills using various Apps. Because in this long haul, you'll end up getting the best price for your property in the market.

Pay Attention to The Priorities

Buyer:

As a buyer, your priority should be getting the best deal you can afford. And researching the seller and knowing what their priorities are, you can end up getting the deal. Because sometimes, the seller needs the right kind of reason to sell you the property. And you knowing those priorities will give you an edge in the multiple offer's norms.

Seller:

While some buyers are solely concerned with the sale price of their house and their bottom line, others simply want to get to the closing as quickly as possible. Whatever your buyer's motivation or priorities are, you'll be able to get at their best price for your property more effectively once you know it.

Are You Finding It Hard to Navigate Multiple Offers on A Property? And You Don't Know How or Whom to Close or Make a Deal With? In The Real Estate Market? I'm Here to Help You Buy or Sell Your Home at The Right Offer and The Best Price. I Can Help You Navigate a Market Where Multiple Offers Is the New Normal and Get You the Best Deal and Offers in The Property Market.

You Only Need To Visit My Website Or Call Me At 423-596-3684. I Will Make Certain That You Close with The Best Offer Available in Chattanooga Real Estate Market.

Blog author image

Nick Daugherty

I'm your hardworking real estate professional who was born and raised in the Chattanooga area. I know that buying or selling a home is a big deal! You are making a life changing decision. As a Realtor....

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