HOW TO WIN IN A MULTIPLE OFFER SITUATION (for buyers)

You just finish touring a home you absolutely adore. Then you hear the dreaded words… “highest and best due by 8pm Sunday night.” A chill sweeps through your body! NOOOO you shout into the void!!

But fret not—we have all of the tools to make your offer as competitive as you’d like!

Let us preface this by saying: You are ALWAYS in the driver’s seat when it comes to pricing and the terms you would like to offer, but we have recommendations (aside from just price) to make your offer shine. Everyone in The Merkle Group has plenty of experience with multiple offers scenarios and knows what it takes to win them!

*PRICE (ESCALATION CLAUSES): We’ll start with the obvious one. Offer a higher price than others, and utilize escalation clauses when allowed/necessary. We will provide comps so you have an idea of what has sold recently in the neighborhood and what price you’d feel comfortable offering.

*REMEDY: Waive it. Don’t need it. Most sellers don’t want the hassle of having to make repairs or potentially owing closing credits to the buyer, and depending on the condition of the home, this may not be of huge value overall to you.. However, we NEVER recommend waiving inspection (with one specific exception.) Waiving inspection creates liability, not only for you regarding your largest investment, but also for the seller. We believe waiving inspection is never a benefit for either side.

*HOME WARRANTY: Waive it. Don’t need it. You can purchase this on your own if you’d like. Typical home warranty cost is anywhere between $400-$800 depending on what plan you choose.

*APPRAISAL: Offer appraisal gap coverage. Offering a significantly over list offer WITHOUT appraisal gap coverage means nothing to the seller. You need some form of appraisal gap to stand out in multiple offer scenarios, and to put your money where your mouth is (figuratively, of course!) Alternatively and ideally, see if your lender will offer an appraisal waiver.

*QUICK CLOSE: We work with lenders who can get deals closed in as quick as 10 days. When you are competing with cash buyers who can offer a quick close, this is essential!

These are just a few of the more popular routes you can take to make your offer competitive, though there are others creative ways that we can review as well!

We ensure you have all of the information you need to feel confident making these decisions, including gathering information on the level of competition and the sellers priorities, age of mechanicals so you’d feel more confident potentially waiving remedy, and communicating with your lender on their timelines and appraisal to verify what their capabilities are.

Let us help you craft a competitive offer so you can create a lifetime of memories!