Multiple offers in Real Estate

The real estate market in King County, Wash. is one of the more competitive markets in the country right now. With inventory at an all-time low, the competition is fierce for potential  buyers. It’s not enough to be first to a open house with an offer in hand. Having a solid game plan is a must if you are looking to buy and wanting to win. And in a market like Bellevue, Wash. and the Eastside of King county, you have to have a strong game plan.

Do your homework

The first step to competing in a multiple offer market is to know what is going on in the market. You need to do some homework. Your real estate agent can be your best source of information. Look over several areas that you think you might like to live in. See how long homes are sitting on the market for and when they do sell how much are they selling for. If you already have a desired neighborhood, pick out some homes that have sold and have your agent contact the listing agent and asked them questions about how the process went. What were the offers like and how many. What percentage over asking did offers come in at, how many were all-cash vs finance, how big were the down payments. This information will give you an idea about what you will need to do to have a chance at getting the home you want.

Next step.

While you are doing your homework on the market it is a good time to make sure where you are button up on your finances. Get your credit score as high as you can. Run a check on yourself or have your mortgage specialist do it for you. You may not realize you have an old parking ticket or past due bill that still shows on your report that is dragging your score down. These hits on your credit score will affect your loan.

Offer strategy.

So, you have done your due diligence and you are ready to make a offer. This is were you want to have a good agent who understands how to navigate a multiple-offer market. Come in with a strong initial offer. (In Bellevue starting at about 10% over asking is a strong initial offer.) Make sure you and your agent look over the listing agent’s instructions and ask question if you don’t understand something. Be flexible. Even if you are not the highest offer, showing flexibility could be the difference. Make your offer as clean as possible. Arrange your offer so it is coherent. You don’t want the seller and their agent chasing you for paperwork or signatures that should be there because that could put you at the bottom of the list. Try to come in with the least amount of contingencies possible. Make sure you show you are able to obtain financing and are able to put a good down payment down.

The small things

The little things can really make all the difference in your offer. A personal hand-written letter to the seller is a good start. Find out what they are like and tailor your letter to their personality. Make them connect to you. Your agent should be in constant contact with the seller’s agent. You could be within a few thousand dollars to getting the home. You don’t want to find out that you could have won the deal if you knew that spending an extra $300 or $400 dollars a month would have made the difference. If you are not the winning offer, be sure to position yourself as the best and only back up offer. In the end you never know if a deal will go through or not.

Ultimately in this type of market you don’t want to get yourself caught up in the frenzy. Stay true to your budget, but also talk about the what if’s with your agent. And lastly stay positive. A competitive market can be demoralising. I know. My wife and I have been in the same shoes as you. But like I tell my clients, your home is out there. Sometimes the waiting is the hardest part.

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