How To Win a Multiple Offer Situation

What’s Important?

Have your agent figure out what’s important to the seller. Most of the time, it just comes down to money, but it can also be the timeline, personal possessions, or other terms.

Escalation Clause

Reduce the risk of offering too much or too little by offering to pay a pre-set amount more than the highest offer, up to a maximum price.

Escrow Deposit

Give the seller confidence that you’re motivated to make it to closing by offering a large deposit.

Inspection Period

You may pull out of a contract for almost any reason during the inspection period, which is a risk for the seller. Shorten the inspection period to increase a seller’s confidence in you as a buyer.

Personal Letter

Play on the heart strings of the seller. Share a little bit about why you should be their buyer.

Down Payment

A large down payment on a loan can give the impression of good financial standing and, similar to a cash offer, indicate a smooth path to closing.

Quick Close

Offer to close quickly and take possession a number of days after closing to allow the seller time to move.

Offer Cash

A cash offer almost always beats a financed offer in a multiple offer situation. Sellers know they’re much less likely to run into obstacles when dealing with a cash buyer .

Contingencies

If possible, remove a contingency to sell your home, a loan approval contingency, an appraisal contingency, etc. Less contingencies give a seller confidence a deal won’t fall apart, but you assume more risk.

Repairs/AS-IS

Let the sellers know you won’t ask for repairs to be made. This doesn’t waive your right to walk away during the inspection period if something big comes up.

Appraisal Difference

When the offer amount may be more than what the appraised value will be, offer to pay the difference in cash instead of reducing the sale price.