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How to Give Yourself an Edge Over Multiple Offers
What do you do when the home of your dreams comes on the market on Friday morning, and the seller has an Open House scheduled for Sunday? This situation tends to freak out home buyers in Sacramento because they worry that some other buyer will come through that open house and snatch away their dream home. It’s a valid concern. In this seller’s market of limited inventory and high demand, it’s very common for a seller to receive multiple offers. So, what do you do? How do you get that edge that you so desperately want and deserve?
First, let me suggest what you should not do. You know the seller will probably receive multiple offers. Don’t write an offer on Friday morning that gives the seller until Friday night to accept because that plan can backfire. Sellers don’t want to be pushed and pressured. Sellers want the highest price from the most qualified buyer and, think about it, if you were in the sellers’ shoes, you’d want the same thing. Nobody likes to be bullied. If you write an offer with a short window for acceptance before that offer expires, it is very possible that your offer will expire. Not a good strategy, in most cases.
If I were a home buyer in this kind of market where multiple offers is the norm and I needed to stand out from the crowd, the first thing I would do is bake a bunch of homemade brownies, maybe a cake, and bring it along when I toured with my buyer’s agent. When I spotted a home that I wanted, I’d leave the delicious baked item on the counter with a very nice handwritten note to the seller, explaining in no uncertain terms how much I loved the home and would give my eyeteeth to own it, and how much I truly appreciated their generosity in letting me view it. You can never go wrong being polite and showing that consideration.
The second thing I would do is ask my agent to write me the cleanest offer possible. That means include an earnest money deposit of whopping, mind-blowing proportions, coupled with a strong preapproval letter from a local lender with today’s date. I’d probably also include a bank statement as my proof of funds. I’d offer to pay all of the seller’s closing costs, except commission. I’d let the seller choose title and escrow. And I’d probably include some type of angle for bridging the gap if the appraised value does not meet the sales price.
In short, I would do everything possible to make the seller feel all warm and fuzzy toward me. I’d get that offer into the seller’s hands as quickly as possible, giving the seller at least through Monday to make a decision. Now, who do you think is likely to be on that seller’s mind on Friday, again on Saturday and all through Sunday? Who is the seller likely to gravitate toward when the other offers begin to arrive? Who will be first and foremost, lingering with affection in the seller’s mind? I’m betting it would be YOU!
If you’re looking for a Sacramento REALTOR, give Elizabeth Weintraub a jingle at 916.233.6759.
Buying That Perfect Home in Elk Grove
Matching first-time home buyers for a home in Elk Grove with an experienced real estate agent is a brilliant way to pair the innocence of younger buyers with the wisdom of the grouchy. Because an experienced agent will just lay it on the line. Buy the damn house before somebody else snatches it from you, we’ll tell buyers. Why would we be so direct whereas another type of Elk Grove real estate agent might suggest buyers go home and sleep on this monumental decision?
Several reasons. First, been there and done that — painfully watched buyers lose the home of their dreams. It’s not true that every suburban house, for example, looks alike. Homes in Elk Grove differ from each other, sometimes dramatically, including location. Which is the second reason. When a house is special, generally agents can spot it way before the buyer will realize it.
I’ve talked with agents who know that their buyer is making a mistake when writing an offer to buy a home. The buyer either takes too long to reach the conclusion that an offer should be presented, or the buyer often doesn’t offer enough to beat out competition. Buyers don’t seem to get it that if they are out looking at homes, other buyers are, too. If they like a home in Elk Grove, other buyers will like it, too. These agents silently hope the buyer will learn the lesson early on and not get mad at the agent when the offer is too low and unacceptable.
Sometimes, listing agents will suggest a seller set a date for reviewing offers, but that strategy can backfire. It can also cause buyers who otherwise might have paid more not to make an offer. In today’s Elk Grove real estate market, it is better for sellers to deal with the offers as they arrive. If the home in Elk Grove is very desirable, priced right and comes on the market at the opportune time with a huge splash, that home will attract multiple offers without advertising for it.
If you see such a home, don’t go home to sleep on it. Ask your agent to call the listing agent and find out how many offers the seller has received. Write the very best offer that you can, and don’t hope, for goodness sake, that you can offer list price and buy the home. It doesn’t matter if the offer to purchase is cash, either.
Let’s just put it this way. You would be amazed at how many buyers in the $500K and up market are paying cash right now. They are not screwing around with non-conforming loans or whining about fluctuating interest rates. They are offering to pay all of the seller’s closing costs and paying over list price, when the home in Elk Grove warrants it. (That “when” is the important factor. Most homes sell for less. Look to your agent for guidance.)
If you know that you can put your lips together and blow to whistle, you are savvy enough to buy that home of your dreams. Just do it.
