How to win a Multiple Offer Situation:
The first thing to think about when placing an offer in a multiple offer situation or a seller's market is how many contingencies are we putting on our offer? Do you need to sell your home first? Do you want them to replace all the carpet? Do you want to buy half the appliances in the house that aren't listed? These things can complicate your offer to where a seller decides, "Well, the other offer might be a little less, but I don't have to wait on all these things to happen. All these contingencies don't have to be wiped away before I get money for my home, and I can move on with what I'm doing." So as a buyer, placing an offer in a sellers' market, try to minimize the contingencies as much as possible.
Second thing to consider, are you preapproved for financing, or are you paying cash? When we submit the offer to the seller, do we have a slip of paper or something stating this buyer is for real, this buyer has the means to back up this offer? Because if you don't have either a letter from your bank saying that you have the funds, a letter from a lender saying that your could qualify for that type of mortgage, your offer is going to be set to the side and looked at as a last resort.
Another thing that we've been successful with this year in this sellers' market is to write a personal letter to the seller, connect one-on-one with them. Let them know why you want their home. You may not have the most money, but maybe you have something in common. Maybe this is your first home, and this was the seller's first home. Maybe you went to the same school. Maybe they're dog lovers and you're dog lovers, and the space was built to accommodate that. Let them know what would make this the perfect home for you as well as why it's a good situation for them. Make them feel like they know you without ever having met.
Again, communication is key. You have a buyer's agent. Is the buyer's agent in connection with the seller's agent? Do they understand what the seller's looking for in this sale? Let's say the seller needs to sell the home because they've been transferred for work. They need to sell the home quickly. If you have an offer that can close in 30 days, they may look at that a lot more favorably than a home to say, "I can't close for another 60 days." They don't want to have to be left here waiting on the money. So your offer, again, might not be the most money, but it might be most conducive to what helps the seller out the most, and that's moving the property so they can move on to their next home.
Make your first offer a competitive offer. Don't try to low ball in a sellers' market. If your budget is $175,000, $200,000, $350,000, whatever your budget is, and say they're asking for basically that amount, go ahead and offer it in a sellers' market. A lot of times, they'll come back sometimes and ask and say, "Hey, there's a multiple offer situation. We want everybody's best offer." At that point, you can adjust. Other times, they may just look at all the offers, say, "That's the one I'm selecting," and if you decided to low ball and someone else decided to offer asking price or a little more, you may be left out and not having your dream home.