Real Estate June 5, 2024

Winning in Multiple Offers!

Top 10 Strategies for Winning Multiple Offers

In the dynamic world of Cleveland real estate, the 21 Mike Team at Century 21 HomeStar, led by Mike Ferrante, is here to provide you with valuable insights on how to navigate the competitive market. With low inventory and high demand, winning multiple offers requires strategic thinking and savvy negotiation. Here are ten key strategies to help agents and buyers succeed in this challenging market.

1. Price Matters

  • Price is King: Offering a higher price is the most obvious strategy. Use this script with your buyers: “If I call you tomorrow and tell you that you lost by $1,000, would you be disappointed?”
  • Incremental Increases: Even a small increase, such as $100 or $500 over the asking price, can make a difference.

2. Offer to Cover Seller Costs

  • Closing Costs: If your buyer has the cash, offer to pay some of the seller’s closing costs. This can make your offer more attractive without increasing the purchase price.

3. Appraisal Gaps

  • Appraisal Gap Coverage: Offer to cover the difference if the appraisal comes in lower than the offer. Set a specific amount to avoid limitless liability. Always check with the lender first to ensure the buyer can cover the gap.

4. Flexible Contingencies

  • Understand Seller Needs: Find out what’s important to the seller, such as closing dates, possession dates, or rent-back agreements. Offer terms that are most convenient for the seller.
  • Repair Credits: Instead of asking for repairs, offer to take credits at closing to avoid post-inspection haggling.

5. Flexible Terms

  • Leave It to the Seller: Indicate seller choice for blanks on the contract, such as title company and closing dates, to show flexibility.
  • Be Flexible with Possession: Allow the seller to stay in the house after closing if they need time to move.

6. Inspection Terms

  • Shorten Inspection Period: Offer a shorter inspection period to make your offer more attractive.
  • Cap Repair Requests: Agree not to request repairs below a certain amount (e.g., $1,000 or $5,000) to show the seller that your buyer won’t nitpick.

7. Present a Stronger Buyer

  • Pre-Approval Letters: Provide a strong pre-approval letter from a reputable lender. Show proof of funds for the down payment or additional assets.
  • Higher Earnest Money: Offer a substantial earnest money deposit to demonstrate the buyer’s commitment.

8. Impeccable Paperwork

  • Professional Presentation: Ensure that all paperwork is filled out neatly and accurately. Use digital forms to avoid handwriting issues.
  • Reputation Matters: An agent’s reputation for being easy to work with can influence the seller’s decision.

9. Use Love Letters Wisely

  • Focus on the House: If your buyer wants to submit a love letter, focus on what they love about the house, not personal details to avoid fair housing issues.
  • Follow Seller Instructions: Respect any instructions from the seller about not submitting love letters.

10. Consider Escalation Clauses

  • Bid Smartly: An escalation clause can help, but don’t rely solely on it. Ensure the increment is substantial (e.g., $2,000 or $5,000).
  • Be Prepared for Counteroffers: Sellers might counter at your maximum offer, so be ready to negotiate further.

Final Thoughts

Winning in a competitive market requires a blend of strategy, flexibility, and excellent communication. By implementing these strategies, you can increase your chances of success in Cleveland’s real estate market. Whether you’re an agent or a buyer, the key is to stay informed, be proactive, and always put your best foot forward.

For more insights and updates on the Cleveland real estate market, subscribe to our blog and follow the 21 Mike Team on social media. If you have any questions or need assistance, feel free to reach out to us. Happy Selling!


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