One of the worst things that can happen during the home buying process is to finally find that right property for your client, only to discover that someone else is already bidding on it. When this happens, how can you present your offer and win on your client’s behalf without them losing their shirt in the process? In this rant, I will cover some of the more important points to winning a multiple offer property in Minnesota.
Yes folks, they are now a fact of our market!
Tip #1 – Customers Need to Know Their Limit
It is tempting to increase your bid based on emotions during a bidding war. Buyers are often willing to pay more out of competitiveness, feeling that something they want is being taken away, or just plain rationalization.
This trap can cost you thousands of dollars. Instead, do your comparative analysis of the properties nearby, choose the highest number you customer’s are willing to pay for this property and stick to it. Remember, when in multiples the highest and best offer is typically selected. Make sure your client’s understand this completely.
Tip #2 – As a Real Estate Professional, Know as Much About the Situation as Possible
Make sure as the expert, you are asking the right questions prior to evening formulating the offer. How many offers are they anticipating? Who are the other agents? Does the listing agent have an offer to present? Do your best to discover the motivational points of the Sellers.
Tip #3 – Make an Impression on the Seller
Be more than just Agent/Buyer #2. Do your best to present your offer on behalf of your customers in person. DO NOT rely on the listing agent to present your offer. You owe fiduciary rights to the client’s you represent. Therefore, you should be presenting their offer on their behalf. NOT someone else!
Meet the Seller in person and make sure they know what your client’s love about the property. Keep in mind, they usually love their home as well and want to sell to someone who’ll love it just as much.
Have the Seller know who you are. Even if your client’s bid is slightly lower, a Seller may sell you the property just because they like you and your folks.
Tip #4 – Remove Conditions
The fewer conditions you have written into the contract, the better. Make sure that your folks are comfortable with language, terms and conditions that may favor the Seller’s. Example – Instead of writing in a definitive closing date, perhaps use the statement; ‘home to close on or before________.’ Call up your loan officer and make sure your clients are approved for the loan and supply a very strong approval letter and remove the financing clause. The cleaner your contract, the more appealing it will be for the Seller.
The more flexible your people can be, the better the chance they will win!
These four tips will help you when you encounter multiple offers in the greater Minneapolis, St. Paul area without losing your shirt.
“The most important single ingredient in the formula of success is knowing how to get along with people.”