3 Tips for Buyers: How to Handle Multiple Offers on a House
When you’ve been searching for weeks and finally find the perfect home, the situation can quickly turn stress-inducing when you discover that the house has multiple offers. What should you do? How do you navigate multiple offers in real estate? How do you balance getting what you want with paying the price you want?
At this moment, you might feel like the control over your future home is entirely in the sellers’ hands. In multiple offer situations, the seller has all the power, right?
Wrong. While the seller will ultimately decide which offer to take, there are several ways you can be proactive in securing the home you want at the price you want. Here are 3 tips to help you navigate multiple offers on a house as a buyer.
1. Work with an agent who knows how to manage multiple offer situations.
While helping her clients, the Smiths, sell their home in Provo, Utah, Kasby Real Estate agent Leslie Jones received 12 offers on the house, 11 of which were above the listed price. Though some might think that with multiple offers the highest and best will take the cake, that’s not always the case. In fact, the Smiths didn’t end up taking the highest offer, but they did take the offer that worked best for their family. So, how can you know what will resonate with the sellers?
This is where an experienced real estate agent can make all the difference. Leslie explains that a few agents contacted her asking what it was the Smiths were looking for—what mattered the most to them as the sellers. A good agent will know what to ask and how to negotiate so that both you and the seller can walk away with what matters the most to you.
2. Offer your personal highest and best so you walk away with no regrets.
When you are in a multiple-offer situation, it’s easy to get caught up in competition. You might begin to stress that your offer might not be the highest on the table, or you might worry you’ve overpromised and will be paying more than the house is worth. But you can’t base your decisions on hypotheticals and worry about what another buyer may or may not offer.
Remember that this is your decision. Analyze what the house is worth to you personally. Whether that means you cover the closing costs or stretch $1,000 to make your offer more enticing, just be sure you can look back on the offer with no regrets—whether or not the seller accepts it. Your agent should be able to find creative ways to make your offer appealing within your budget.
3. Write a compelling homebuying offer letter.
While some sellers might not take the time to read your letter, many will, and a compelling, personalized homebuying offer letter can help your chances of landing the offer. If you don’t know where to begin, here are a few useful tips to help your letter stand out from the rest:
- Address the seller by name and stress commonalities you share.
- Be genuine and express what it is you most love about the house.
- Don’t be afraid to share personal details or emotions.
- Mention any financial extras you are willing to offer for the house.
- Share a picture of you and what it would mean to you to own their house.
An offer letter will help you establish a personalized connection with the seller and assure them that their home is being entrusted to good hands. When Leslie was helping sell the Smiths’ home, the family read every offer letter, which helped them make a personal connection with the buyers. In addition, Leslie created a real estate offer summary sheet that helped compare the prices, concessions, earnest money differences, and more so the Smiths could find the offer that fit them best.
No matter what the outcome is in the end, if you follow these tips you can know that you gave your best and that if you keep following this process, you will eventually find the right home at the right price.
If you have questions about a multiple-offer situation, contact us. We’d love to help.