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. I work in the Greater Toronto area where the majority of properties have multiple offers (a.k.a. "Bidding Wars"). When every offer contains more than a dozen pages you need to find ways to get your offer to the top of the pile.
With this in mind, here are the five best tools I use to win in multiple offer situations (even when I don't have the best price).
1) Provide Context
Most 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
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 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 without having to correct errors that your agent should have caught. Have all your dates, chattels included and fixtures excluded clearly defined in the offer when it's time to present. 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 once 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 get my offer noticed.
Do it just right and you may not need the highest price to push your offer over the top.
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. However, I quickly learned presenting in person is the most effective way to bring the two sides together. By presenting in person, I get a chance to see the seller's reactions, hear their feedback and have a chance to overcome their objections; you can't do all this by email.
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 so having a disciplined approach is important.
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 email@example.com.
Simple and Easy.
Buying A Home Is Painless...
If you know what you're doing.