Episode 65, Segment 3: Strategies for Winning Multiple-Offer Deals
Guest real estate agent Monica DiSchiano joins the show to talk about the best strategies for winning a multiple-offer deal in the incredibly competitive Austin market.
As real estate agents have been seeing as many as dozens of multiple offers on homes in Austin recently, it's important to figure out how your offer can stand out from the crowd.
"Anything under $250k has so many offers and is so competitive," Monica says.
Outbid or offer cash
"Sometimes just offering $5k more can get you the deal," John says.
"There are a lot of cash offers out there right now, and sometimes a seller will choose a cash offer even if it's a lower offer, because then they don't have to worry about it appraising and it can close faster," Monica explains.
Put more money down
"Of course this may not be an easy option, but if you show up to the table with just a little more money down, it will make your offer much more appealing," John says.
If you can put 20% down, that can not only win you the deal but also save you from having to pay for mortgage insurance.
Write a letter
"Tugging at the heartstrings can actually work pretty well," Monica says.
"I find that people get very sentimental about their house," Andrew says. "If they grew up there or their kids grew up there, they may want to know that their home is going to a good family and not an investor."
John chimes in, "I've seen so many examples where the letter makes a difference. I bought a house last summer and I knew the sellers had kids and my agent wrote them an email with our story and we ended up getting the house!"
"I knew it would make a difference, and it did."
Put a great team behind you
Having a reputable mortgage lender behind you can definitely help you in the process," Andrew says. "When we do a prequalification we really vet them out well and sometimes we'll even call the seller's agent and tell them that they are a good candidate and don't have any red flags on the lending side."
"All lenders aren't equal," John adds. "How many times do we see folks win contracts because they know Supreme Lending or our loan officers? It really does make a difference."
Be a flexible buyer
"Basically, if you can find out the seller's ideal scenario, just try to meet that and not make demands for when you need to close as a buyer," John says. "If you're flexible, you can allow the seller to determine the date rather than you and possibly lose the deal."
"If you're working with a good agent like Monica, find out the seller's minimum criteria and just meet it and give them what they want," John continues. "A lot of buyers enjoy the game of negotiating and want to have something on their side, but it's just not in the card for them in this market right now."