6 Best Tips For Home Buyers in Handling Multiple Offers (And Win!) In A Seller's Market

Sometimes homebuyers wonder if it’s even worth trying to compete against other buyers in a seller’s market. It’s not unusual for a seller to receive 20 offers when there’s very little inventory on the market.

It’s almost always a good idea to write an offer anyway. Somebody will be the winning offer. Why can’t that person be you? It can if you follow these tips to sweeten the pan.

Submit a Large Earnest Money Deposit

Pending home sales sometimes blow up and many sellers worry that once they commit to an offer, the winning buyers might back out of the transaction or default on the contract. By then, all the other buyers have disappeared.

Remember that the earnest money deposit is part of your down payment. You’ll show the seller that you’re serious about closing if you increase it above normal. You’re only offering the seller the money now rather than later, and it speaks volumes.

Show the Seller That You Are Qualified

Almost every offer will be accompanied by a lender letter. Ask your lender for a loan preapproval letter to make you stand out from the rest. This is different from a pre-qualified letter. Being preapproved makes you a stronger buyer in the seller’s eyes.

Give the Sellers Time to Move

Buyer possession is often a sticking point. It’s hard enough to juggle multiple closings when you’re selling and buying simultaneously and it’s even more difficult when the seller is doing the same. Offer to cut her some slack by giving her two to three days to move out after closing without expecting compensation.

Shorten or Waive Some Contingencies

You have 10 days for inspections for lead-based paint under federal law unless you waive that right in writing. Get a home inspection but consider tightening that time period.

You might also want to waive the loan approval contingency if your loan is solid. Talk to your agent about comparable sales to decide if you want to waive an appraisal contingency.

Offer to Bridge the Gap Between Appraisal and Sales Price

Offer to pay the difference in cash if you have a bit extra on hand and you think the home might not appraise at the price you’re offering. The seller is probably thinking the same thing.

Write Your Best Offer

Don’t hope for negotiation in a seller’s market. Offer your highest price, one you can live with if your offer should be rejected. Do your best! Make it attractive, maybe a little above list price.

Ask your agent for a comparative market analysis to determine the pricing range. Sometimes sellers deliberately set a price below comparable sales in an effort to generate multiple offers. Paying a little extra doesn’t necessarily mean you’re paying over market value.

Bottom Line

Yes, you really, really want the home. And so do numerous others. If you’re tempted to increase your price, again and again, ask yourself this: Do you just want to win or do you really want the house that much? Competitive personalities especially can fall into this trap and you don’t want to dramatically overpay for the property. 

Come in with the best possible offer you can reasonably afford, one that still meets all the other parameters. Then live with it.

Want to get the home of your dreams in a seller’s market? Reach out to our local realtor, Cody Tuma, at 541-953-7784/541-306-3139 today!