Handling Multiple Offers When Buying

The post below was written by Shayla Twit.

I showed a property to one of my clients this week that was owned by a bank. These types of properties are also known as a foreclosure or REO. It was listed under $200,000 and had only been on the market a few days. My client decided that she liked the home and decided to write an offer. Come to find out there were four other offers on this bank owned home. This is becoming a common scenario when buying a Sarasota foreclosure.
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Tips to Handling Multiple Offers on the Buyer Side

1)    Mortgage pre-approval or proof of funds

It is best to get pre-approved for a mortgage or have proof of assets prior to looking at property. If you get into a multiple offer situation and you are not prepared there is a strong chance that you will lose. I have represented sellers who accepted the offer with the lower sales price because the buyer could prove that they were prepared to buy. Do it right from the get go.

2)    Put your best foot forward

When there are other offers buyers usually have no idea the amount of the other offers. Most listing agents will just tell you that there are other offers. In a transaction where there are not other buyers you typically put in a low offer and expect to negotiate. In a multiple offer situation you should submit your best offer right away. This could mean full price, close to it or over it. Consult with your Realtor to see what is your best strategy.

3)    Be comfortable with paying more than asking price

I know it is hard for some buyers to get past this one. Some people are just against paying more than what the seller is asking. Consult with your Realtor and get comparable sales for the home. The listing agent and seller might have artificially come up with a low asking price in an attempt to get multiple offers. You should be ok with paying more than list price.

4)    Sellers are driving the car

I know it is a buyers market and it may be hard to accept but when there are multiple offers the sellers have taken control. You as the buyer no longer have the same leverage.  Be nice to the seller. ;-)

If I can help you buy or sell Sarasota real estate contact us at 941.812.6272.

Shayla