One of the most challenging things a buyer faces in real estate today is standing out in multiple offer situations. How do we give our buyers the best chances of success? Today’s episode of The Real Estate Sales Podcast features Jimmy’s tips to win in multiple offer negotiations.
- Brad Nicks gave four points sellers look for when choosing an offer. Jimmy’s strategies revolve around capitalizing on at least one of these four components to win a sale.
- In our current market, lowballing is not successful. Put your best foot forward because you might only have one shot.
- Add an escalation clause, which states a buyer will pay a certain amount above the top offer received.
- Utilize appraisal gap guarantees, where a buyer agrees to pay part of or all of the difference between the purchase price and an appraisal.
- Offer to pay the seller’s closing costs – If you’re in a competitive environment, offering to pay part of or all of the seller’s closing costs helps the seller’s bottom line and makes you stand out.
- Let the seller choose the closing date, or give the seller a 3-4 week time frame to pick from.
- Have a closing date of Friday, but let a seller stay until Monday to give them time to move.
- Offer to lease the house back to the seller for the first month of acquisition.
- Make a contract “as is,” so the seller doesn’t have to make repairs. However, make sure the buyer has an out if necessary for any significant issues.
- Provide a reverse contingency stating the contract is contingent on the seller finding a new house within a specific time frame.
Certainty of Sale
- The biggest obstacle of financing a home is competing with all-cash buyers.
- To learn how to become an all-cash buyer, look at programs like Home Partners, Home Wood, and Ribbon.
- Bridge loans an option if the buyer has equity in their existing home.
- Some agents offer a cash guarantee that the home will close on the date stated (but make sure you have a lender you can depend on.)
- Get your buyer approved as quickly as possible. Once you’ve got that approval, remove the financing contingency to give more certainty to your seller.
Jimmy’s other advice:
- A poor attitude with the seller’s agent makes the buyer’s opportunity goes down. Be nice and be understanding.
- If you’re on the listing side, respond to every agent’s offer to build goodwill and relationships. When you’re on the other side as the buyer, that agent will remember your helpfulness.
- Ask other agents for a recommendation for future agents, but purely for agent-to-agent communication, not marketing. This provides a reference point to assure a new agent you’re easy to work with and provide smooth transactions.
- If the buyer writes a personal letter to the seller explaining the reasoning and emotion behind a sale, it will put an emotional face to the otherwise data-driven name.
Connect with Jimmy Burgess on LinkedIn and Facebook, as well as his YouTube channel. If you like what you heard today, we’d love it if you’d share a rating or review and then subscribe to the podcast and tell others about it as well. You can find The Real Estate Sales Podcast on Apple Podcasts,Google Podcasts, Spotify, and Audible, and our website, The Real Estate Sales Podcast.