How To Win In A Multiple Offer Situation

How To Win In A Multiple Offer Situation

You finally found the home you want to make an offer only to find out it has multiples offers… has this happened to you?  Tired of running in to this situation over and over?  Are you done with your offer not getting accepted for the tenth time?  Let me show you some tips of how to win in a multiple offer situation.

First and foremost let me just say that you can’t win them all, there is always someone who may be in a stronger financial position and more willing to give more for a property.  It could be a cash offer above asking price that wins the bid, but can you blame the seller?  A cash offer has no strings attached, is guaranteed and no appraisal issues to deal with either.  So just know those are out there and they can be tough to beat, but the tips I give you will get you very close if not better than their offers.

Remember sales price isn’t everything, this is a big myth that needs to go away thinking the sales price is the most important item.  In reality the sales price is just part of it but none the less it is important.  The most important item tends to be the seller’s bottom line, which is different the the sales price. 

Do your home work, as an agent I start by doing research to see where the property stands compared to the market.  This will help you determine a good price to offer whether it is at the asking sales price, lower or higher. 

Next work on all the details of the contract and make each one as strong as possible.  So how much down payment will you make, earnest money, are you fully credit approved, how much time to close and what about a lease back?  Will you be asking for the seller to pay any of your closing costs?  How about an option period, how much time do you need and what amount will you pay for this option?  Would you consider doing no option?  Which could mean no inspection?  Remember when I said the sales price is not everything?  This is what I mean, get these details as strong as possible and it will make your offer really stand out.

Consider writing a personal letter to the seller on why you want the home.  Be specific to the property, maybe it is the layout or the neighborhood or because you grew up on the same street.  Maybe you like the back yard or the remodeled kitchen the seller had done.  Find a way to make it personal about you but also about the seller’s home, this will help make your offer stand out.  Remember to many sellers this is their home and they want to see it go to a good owner who will take care of it like they did.

Remember to do some research and find out if the property is properly priced.  It is not all about the sales price, the details matter so make those as strong as possible.  Get personal by writing a personal letter to the seller on why they should pick your offer.  These tips should help make your offer stand out for sure.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

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How Do Multiple Offers Work?

How Do Multiple Offers Work?

Multiple offers are becoming the norm in todays market but how do they work if you happen to find yourself in this situation?  Is there a protocol a seller or listing agent must follow?  Do you get to know how many and what terms the others offers are?  

Multiple offers are very common in this market and believe it or not there is no formal process a seller or agent must follow.  I will say there are popular trends I am seeing and I will cover those with you.  

What is a multiple offer situation?  The answer is simple, this happens when a seller receives more than one offer on their property.  It can be a total of two offers or twenty two offers.  It is common in todays market for an agent to predict when a property will have multiple offers and will actually make plans on how to handle that ahead of time.  For example it is common to see a home hit the market on a Thursday or Friday with deadline for offers by Sunday afternoon.

Listing agents will often first let all the agents know there are multiple offers and then set a deadline.  Setting a deadline does two things, first it sets a time so everyone knows when they need to have their offer in but also when they will know a response.  Remember buyers don’t want to be tied up in a bidding war when they could move on to another property.  Second it also creates a sense of urgency for new buyers looking at the home so they can move quick and create a stronger offer right from the start.  This market has made buyers put their best offer up front instead of just testing the seller with a weak offer.

Once the deadline passes the listing agent will gather them all, process them and put them in an easy to understand format to present to the seller.  The seller will review them, see which one works best for their situation and pick one.  This usually occurs the next day after the deadline and is rather quick, remember you don’t want buyers getting inpatient and removing their offers.

Those are just some of the basics of how multiple offers work in case you find yourself in this situation.  Be sure to check out my video about how to make your offer stand out in a multiple offer situation.  I give you tips on making a strong offer so you can increase your chance of getting that home you really want.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

Sales Price Isn't Everything

Sales Price Isn't Everything

One mistake I often see from buyers making an offer is they only think about the sales price.  What sales price should they offer to get the home.  This is a big mistake as sales price you offer isn’t everything, instead there are many more variable to take in to consideration to make your offer more competitive.

The reality in a high demand low inventory market is the willingness for buyers to offer full price or over asking price.  The major issue with this that many buyers do not consider is the lender will want the property to appraise for the offered sales price.  The problem is many times it won’t so the seller has to consider other factors besides the sale price.

What factors am I referring too?  Well sales price isn’t everything and there are many other items to take in to consideration when putting an offer together.  For example will you be making a small down payment or large?  The smaller the down payment the higher the risk the appraisal will be an issue, so sellers like to see a higher down payment to avoid appraisal issues.  What about earnest money will you put the standard 1% or will you go higher to show you are serious?  Are you pre qualified, pre approved or fully approved for the mortgage already which is music to a seller’s ears.

How about closing costs, are you asking the seller to help pay your closing costs?  Or will you pay your own?  Will you even offer to pay the seller’s closing costs or some?

All these and many more are ways to really make your offer be strong and as you notice they have nothing to do with the sales price.  Imagine this, you offer to pay full price but offer to pay $2,000 of the seller’s closing cost, don’t ask for a home warranty and even offer to give the seller a free 10 day lease back?  Now your offer is worth more than just full price, you can add another $2,000 savings in closing costs to the sellers bottom line plus another $450 since they won’t have to pay for a home warranty.  On top off all that they can stay for 10 days free and have time to move out without being in a rush, now you see what I many about sales price not being everything?

When making an offer don’t get too caught up in the sale price instead strongly consider every other section of the contract and find ways to make every section as strong a possible.  The key however is to know your limit up front and always make your strongest offer from the start because in this market there will be no second chance.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

How To Make An Offer

How To Make An Offer

You finally find the home you want but how do you go about making a formal offer?  Making an offer on a home for sale like anything takes proper research to make an informed decision or in this case an offer to purchase the home.

First and foremost I would recommend you work with a Realtor® as they will guide you through this process the correct way.  Start by looking up comparable homes that have sold in the same area to gauge where the market stands for this property.  You will want to make adjustments and figure out what the market activity is doing for similar homes… this will give you a good idea of where you should make an offer as far as sales price.

As you may know the sales price is just one of many pieces that go in to making a formal offer.  Most buyers just think of the sales price however there is so much more to it.

What type of financing will you be doing?  How much time will you need for credit approval?  Or are you already fully credit approved?  Will you be asking the seller to help pay for your closing costs?  How about a home warranty or do you feel confident without asking for the seller to pay for one?

Have you had a chance to review the seller’s disclosure or will you put that off until you are already under contract?  How about a survey, is there an existing survey or will a new one need to be purchased?  Who will pay for it?

How about an option period, how much will you be paying for that option?  Will it be for 10 days, 7 days, 5 days… or will you not have an option period?  Will you be doing an inspection or will you pass on that too?

All these and many more are all things to take in to consideration when putting together a formal offer on a home for sale.  As you can see the sales price is just one small piece in many factors that go in to making an offer.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

How To Make Your Offer Stand Out

How To Make Your Offer Stand Out

You finally found the home you want but only to find out it has multiple offers.  Or maybe you have been making offer after offer with no luck.  How can you make your offer stand out?  I will show you how you can make your offer stand out in a sea of multiple offers.

First you will need to be sure to have a Realtor® by your side to guide you through a strong offer.  Start by checking comparable properties to see if the price is appropriate.  Once you have a good idea of what the market is doing for similar properties set a price you want to offer.  Here is the key, this is only one factor in many other factors you should consider, remember it is not all about the sales price.

Next let’s break down every section of the contract and make it as strong as possible.  Now remember you won’t be able to go all out on everything as we all have our limits but definitely draw a line for each on what you are willing to do.  I say draw a line because you need to know ahead of time where you can afford or risk to go and where you can’t, you need to know this up front going in.

Will your offer be contingent?  How much earnest money will you be putting down?  What type of financing are you doing and are you qualified, pre-approved or fully approved?  How long of an option period will you be requesting?  10 days?  7 days?  5 days?  Or how about no option period?  Inspection or no inspection?

Will you be asking the seller to pay for a home warranty, or will you skip it all together?  Do you need help paying for your closing costs or not?  How about offering to pay some of the seller’s closing costs?

All these are items you should taken in to consideration and many more.  Either way be sure to make every single item as strong as possible, with every point you make stronger it only makes your offer stand out even more.  Just remember that in a strong demand market that we are in now you may not have a second chance to make your first offer your strongest.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

Would You Pay Over Appraised Value?

With increasing demand and lower inventory I continue to see multiple offer situations which inevitably leads to the concern of paying over appraised value.  Would you do it?  Should you do it?

Prices are on the way up on a record pace and driving those prices are buyers willing to pay top dollar for real estate.  Some buyers will go as far as giving the seller asking price, above asking price and even above appraised value.  This is becoming all to common, but would you do this?

I come across this issue all the time and this is the way I like to present it to my clients.  Every client is different so there is not a single solution answer.  The biggest factor to determine if you would do this is your the buyer.  Can you do this?  Do you have the funds to pay the difference between the appraised value and proposed sales price if the lender won’t pay it?

These answers are different for each buyer, especially if they are an investor or going to be using the home as their primary residence.  For investors they are more about the figures, getting a good deal and maybe getting a property below market.  Also what is their ROI?  (Return on investment)  Usually paying over appraised value may not always make sense to them, keep in mind they tend to be less emotionally tied to the property.

On the other hand a person who will actually live at the property may have a different mindset.  They are willing to pay more since they will enjoy it for many years to come.  Maybe they are in a time crunch and have to move.  Or there are other factors like schools, location, etc… that make it worth it to that individual to pay the additional funds.

Every scenario is different but you have to evaluate where you stand, can you do it and also be sure to draw a line in the sand as well.  Set a limit because the last thing you want to do is have regrets after the sale.

With the heart of a teacher I strive to educate my clients so they can be better informed.  I strongly believe an informed consumer makes better decisions and are less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome