This market is absolutely brutal. Inventory is at record lows while Utah has been flooded with buyers. Chances are, you will be competing against multiple offers. Certain price ranges and areas are demanding floods of buyers, but unfortunately, not a lot of homes are on the market for sale. In order to win a bidding war, a few steps MUST be taken. From our losses to our wins, this is what we have learned.
1. Select an agent who has done this before
Multiple offer situations are always draining. An offer on a home is such a massive leap of faith for a buyer to take, pick an agent who can counsel you to take the correct steps. Your buying agent will typically have a good judgment of what could help win the property.
2. Full underwriting letter
Why not just a standard pre-approval letter? Pre-approval letters are great, but they are not always guaranteed. Make sure you find a lender who can get you underwritten. Being underwritten by a lender shows that you can close extremely quickly. It is a document that shows the seller that you compare to a cash buyer.
3. Offer over asking price
This is painful but obvious to do. Can you afford to spend an extra $5,000? Talking to most real estate agents price is the largest dictating factor for sellers. You will often hear the term “What will my net amount be?” That term is describing what the seller can profit. Get with your lender and figure out what your new monthly payment would be if you offered an additional 5,000-10,000.
4. Be flexible with your dates
Do you really love the home? Can you close in 15 days? Can you allow the seller to live in it for two weeks after it has closed? These are major factors that allow the seller to get out of the house and not feel rushed. Be time sensitive, and be flexible!
5. Write a letter
Try and make this transaction personal! Tell the seller how much you love the home. Tell them your vision, how much you love the neighborhood they live in. Boast to the seller how incredible every little detail is. This will not help you win an offer that is 10,000 less than the other, but if the offers compare this will give you an edge. Make this personal! And if you are an investor/flipper, please please please do not tell them you are going to demolish the home they have cherished for so long!