With inventory shortages across the Twin Cities market, we know that homes that are priced & staged well are likely to sell in multiples! Here are 5 tips to helping your clients win in multiple offer situations!
Present Yourself & the Offer Well Nothing is worse for a listing agent than receiving a generic forwarded Authentisign email with no message and attachments other than the downloadable links for an offer. Listing agents want confidence that the agent on the other side will get this transaction to closing smoothly. Call the agent and find out what matters most for their seller. You’d be surprised, it’s not always just about the dollar amount. Then make sure you summarize your offer in the email with the offer attached as a PDF. Highlight the best/most prominent terms and give the listing agent any information that will help boost confidence in your offer. For example, who’s the lender? Have you worked with them before? Is there anything about the buyer’s situation outside of the offer that you can legally disclose with your buyer’s written permission? For example, they’ve been at their job forever and are super flexible with closing date because they’re living with family.
Escalation Clauses We know there can be mixed fillings about escalation clauses out there, but they can and do work! Make sure you understand how to write them in a way that is competitive and represents your buyer well.
Inspection Guarantees It is always in your buyer’s best interest to get an inspection. However, we know that in a multiple offer situation, it’s not always the most competitive. Add an inspection guarantee instead! You can still have the offer be contingent on an inspection but write in additional language that states your buyer won’t ask for repairs over a certain dollar amount. In some cases, you can even write in that the inspection will be on a pass/fail basis. You won’t ask for any repairs at all, however, still reserve the right to cancel during an inspection contingency period should your buyer find something detrimental about the home.
Appraisal Gap Clauses Multiple offers can often drive up the price of a home, sometimes beyond what the home may likely appraise for. Writing in appraisal gap language can help strengthen your offer as the seller knows your buyer will get them as close to purchase price as possible, should the home not appraise.
Flexible Closing & Possession Dates It’s not always just about price! Sometimes, the seller’s transition out of their current home may matter more. Not only can you be flexible on closing date to have a competitive edge as a buyer, but the buyer can also be flexible on the possession date. Give the sellers an additional 48 hours to move out once you close or ask if the seller could benefit from a rent back situation.
We hope some of these tips help you WIN your next offer!