I work mostly in the Greater Toronto area which is the most competitive market in Canada where the majority of properties I offer at have multiple offers. Not everybody can waive financing clauses or forego a home inspection in this market so you need to get creative in order to stand out from the rest.
With this in mind, I am sharing five of my favourite little tricks that I have used to win multiple offers (even when I don't have the best price).
1. Provide Context- Most home sellers are very curious to know who will be moving in to their home. Save them from having to wonder and just tell them who you are, where you’re from, why you love the house and what your plans are once you move in. The sellers were once in your shoes and likely had the same motivation as you. Whether it’s a great school district you’re after of a shorter commute, give them a reason to identify with you
2. Make No Mistakes- Make sure you comb over your offer to ensure all the spelling is correct, all initials and signatures are correct, all attachments and schedules are included. Very few offers I get are flawless but when I get one, I 100% take notice and point it out to my client as well. Seeing spelling mistakes and minor mistakes is a turn-off and will not instill confidence in the Seller.
Sellers want a 'clean' offer that they can accept outright and not have to sign back to make corrections. Have all your dates, chattels included, and fixtures excluded in order when the offer is presented. Give the Seller no reason (other than item #5) to want to work with another offer.
Even minor corrections could put you at a disadvantage in a multiple offer situation and may even cost you the deal.
3. Be Clever- Use whatever you have at your disposal. I put a pair of platinum seats to a Leafs Game into an offer. I’ve also done a chef’s table experience at a 5-star restaurant in another offer for someone I knew was a bit of a foodie. These gestures always gets my offer noticed.
Don’t have anything unique to offer? You could write something to stand out like “Buyer acknowledges the Seller put a lot of work in to keeping the subject property in pristine condition at the time of this offer. From the date of acceptance and onward, the Buyer agrees to do everything in his power to maintain the property to the same standard as the Seller has."
This kind of stuff will help you get an advantage over other offers if done right.
4. Present it In Person- This is without question (my opinion) the best way to get noticed. People respect the effort it takes to show up in person to meet with them. Conversely, they have a harder time saying no even if your offer might not be that strong.
Presenting in person used to scare the bejeezus out of me when I first got in to real estate but I quickly learned it’s the most effective way to get things done. By presenting in person, you get a chance to see the seller's reactions, hear what they like and dislike about your offer and you'll have a chance to shoot your shot as the saying goes.
5. The Obvious One- The easiest way to get noticed is by having the best price. Cash is king in the world and when you find yourself in a bidding war price is usually the deciding factor.
Sometimes no matter how creative you get, it will ultimately come down to price. In these cases, know your numbers, be disciplined and don't overspend. While the market seems to always go up, there is no guarantee that will always be the case.
Use these 5 tricks in your next multiple offer and you will hopefully get the same results that my clients have gotten over the past few years.
If you have questions about real estate, contact me at firstname.lastname@example.org.