So you put an offer on a house and you find out there are multiple offers. Here are my seven tips on “How To Bid On A House With Multiple Offers” and get that house of your dreams
Tip 1
Get pre-approved with a local reputable lender. These national chains are okay at times; but when it comes to multiple offers, that seller’s going to feel much more confident and comfortable with a reputable local lender and a strong pre-approval.
Tip 2
Explore different financing with your lender. FHA and VA loans are a lot more strict when it comes to appraisals and inspections and things to fix. It makes it less desirable to some sellers. So explore to see if you qualify for a conventional, which is less strict, which gives you a little bit more of a better upper hand.
Tip 3
Have fewer contingencies. Now, I’m not telling you to waive the home inspection; but I can tell you in multiple offer situations, re-look at all your contingencies to see if there’s anything that you are comfortable in waiving.
Tip 4
Work with the sellers to find out what is more important to them. Do they need to close in 30 days? Do they want to close in 45 days? Do they want to close in 60 days? Do they have to find a house first before they sell theirs? Get all this information to help your offer stand out and make it stronger.
Tip 5
Put a good earnest money deposit down. When you have more skin in the game, it is harder for you to walk away from a $5,000 deposit than it is for you to walk away from a $500 deposit. The sellers know this. So the stronger your deposit, the stronger your offer.
Tip 6
Put your best foot forward first. That means put a nice strong offer at the get-go. Don’t try to hit them low and have them talk you up. In multiple offers, that will not work. Put your best foot forward first.
Tip 7
Think about an escalation clause. Think about the number that you’re willing to walk away from that house. So you make an offer of 290, escalating up to your top amount, beating any other offer by $1,000. Sometimes it works, sometimes it doesn’t.
That is my seven tips on how to help you win in a multiple offer situation. I hope you found this information useful and helpful. If you have any questions at all, feel free to contact me on my cell phone, (603) 657-6787. Or email me at kevin@kevincooper.com. See you on the next episode.
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