When preparing an offer to purchase a property in a multiple offer situation, it is important to understand that there are several terms in the contract that can be adjusted to sway the Seller’s decision.
The first term that comes to mind is the sales price. Offering over the list price is a “must” when it comes to a multiple offer situation. How much over, depends on the price range and how well priced the property is to begin with. But, the key here is to offer an odd amount above – not simply $5,000 or $10,000, for example, but $5,750 or $10,775. This could make the difference between your offer being selected over another.
Other terms that can be adjusted are the financing condition, option period, and closing/move-in date.
For Buyers that are very certain of their financial situation, they can eliminate the financing condition. Doing this will definitely place them as a forerunner! But, the true forerunners here are those Buyers that are able and willing to pay cash. Some Buyers will pay cash with the knowledge that they will finance the home after closing. As we say in the industry, cash is “king” and this is certainly true in a multiple offer situation.
Then, there is the Option Period. This is the period of time when Buyers do their home inspections and it is during this time that they can decide to terminate for “any reason” or “no reason.” Because another paragraph within the contract addresses Buyers’ access to the property, inspections are not “tied in” with the option period. So, Buyers may want to consider eliminating the option period, especially if the home is newer and in great condition. Eliminating the Option Period will assure the Seller that you are truly serious!
Last, but not least, there is the closing/move-in date. Be sure to find out what the Seller’s preferences are. Would they like a quick close, or do they need more time, say to find another home to move into. Or, would they like to do a Seller temporary leaseback? If the Buyer has flexibility with regard to their move-in date, this can be a great way to move their offer up to the forefront.