How to handle multiple offers on a house? Hi, I’m Jeanine Corcoran, owner, and broker for The Corcoran Connection. I explain in this video how to win when faced with this situation.
Right now, in 2021, whether you’re a buyer or a seller, I’m sure you’re familiar with multiple offer situations. When there is low inventory, it is a seller’s market. And, right now in this market, sellers are receiving four to ten or more offers on their homes.
The first thing you want to do is become fully approved. Being “fully approved” means you have submitted all of your paperwork, not some of it to your lender. Your lender then sends it to the underwriter who stamps it and says you are fully approved, and you can go buy a house.
What does this mean? It means as the home buyer you can tell the seller that you only need two and a half to three weeks tops to close. This makes you look strong in front of the seller. The only thing left to do is the inspection and the appraisal.
The second thing you want to do is go in at the asking price or a little over. Many homes that are selling in today’s market, especially here in Saint Cloud, FL are going for ten thousand or more over the asking price.
The third thing to do is use an escalation clause. What that? Well, talk to your realtor about it because it works really well in this situation. How does an escalation clause work? If you put in an offer at the asking price, then you can say what your maximum would be based on other multiple offers. If you are working with a realtor, they should use how to use this clause. Every time you submit an offer to buy a house, an escalation clause should be used. This helps you stand out.
The fourth thing you can do is to offer the seller a home warranty during the time that the home is under pending status. You, as the buyer, offer the seller a home warranty. It costs about $65.00. Now you will have to move forward with a home warranty when you close for yourself whether the seller pays for it or you do. Again, this helps you stand out from the seller’s point of view.
The fifth thing is to “tell your story”. An especially important piece to include in your story is mentioning your good credit score if you have one. If the seller sees your story and thinks well that’s nice but then sees your credit score of 780, you’ll be looking very good in their eyes.
The sixth and final tip is to have your realtor include their resume. You may be thinking what does the seller care about the realtor’s resume? Well, if they see that the buyer’s realtor is active and has done a lot of sales and contracts, they are going to have more faith that they can get the job done.
These are all suggestions to show you how to handle multiple offers on a house and how to win the bid. We invite you to subscribe to our Youtube channel so you can be alerted to when we come out with new informational and educational videos on real estate as well as new property listing walkthrough videos.
