Strategies for multiple-bid scenarios
California and some northern states are accustomed to dealing with multiple offers on properties for sale. In general, South Florida hasn’t played in that sandbox, but along came COVID chaos and the the demand for comfortable, spacious housing shot up while inventory declined. This (un)perfect storm has caused multiple bids on top notch homes in the market.
My team and I just witnessed this (again) with a gem of a house in Coral Gables. It wasn’t a particularly big home but it did have a guest cottage and screamed charm and comfort. So much so that we received 5 offers in 2 days. Whomever pays the highest gets the home, you might say. Not always. Here are a few things to keep in mind if you are house hunting and find yourself in this competitive and stressful situation.
- An all cash offer is extremely attractive to sellers. If you can swing it, this is always a strong position – even if your offer is a few thousand dollars less than someone who is financing.
- If you are financing, include your pre-approval letter along with your offer so the sellers feel comfortable that you can secure funds readily.
- Speaking of financing, partner with a local lender rather than one of the big banks, as they have a much better track record for closing in a timely manner.
- Find out from the listing agent if sellers are interested in closing quickly or if they need a long closing, try to sweeten the pot with convenience.
- If there are repairs that are required, you may want to forego the request to fix or provide credit. This will make you appear more amenable to a sellers’ needs.
Today’s real estate climate is truly a seller’s market. Attractive homes in desirable neighborhoods are being offered contracts, sight unseen. If you are serious about purchasing your next home, get all your ducks in order before you even see your first house. Make sure to prioritize that wish list, secure financing, and have your Realtor set you up with instant update emails when new inventory pops up. Or better yet, work with a highly specialized Realtor who has the insider knowledge on your desired location. It always helps to know what’s coming on the market and when.