Hi everybody, your Tampa real estate expert, Lance Mohr, and we're talking about how to
buy a house.
Today, I want to talk about how to beat other home buyers out if you are in a multiple bid
situation.
Now when a lot of you go out and look at homes, especially if it's a seller's market, it won't
be too surprising if you are in a multiple bid situation; you are bidding against other
buyers.
If it's a buyer's market or a stable market, it's not going to be as common but it will
happen especially if it's a really nice home or if it's a really nice area or if it's a
really good price.
So you need to know what you can do to give yourself an advantage over other buyers.
Now I want to say this, this isn't going to work on bank owned properties because banks
don't allow this.
They basically do a highest and best, and the same thing with the relocation companies
or other types of REO's.
So we're basically talking about traditional sales.
So I'm going to give you four things that you could do to crush your competition if
you are in a multiple bid situation.
Number one is your agent has to present the offer and you have to keep that offer clean.
So what I mean by clean, don't cloud it up with just tons of I want the seller to pay
this, I want the seller to pay that.
I understand if you have to the seller pay a certain amount of closing costs, but to
start clouding it up with I want all your window treatments and they are not offering
them or if they don't offer maybe the washer, dryer and refrigerator, don't start asking
for that.
And home warranties, you could pay for home warranty outside the closing.
So don't cloud the contract, keep it really clean and you have to have your agent present
the offer.
I'm not necessarily saying face-to-face, but over the telephone.
I would say probably 50% of all the contracts I get, I don't even talk to the agent.
It's sad, but a lot of agents out there, what they're doing is, they're writing the offer
up, they are sending over to the listing agent, maybe myself.
I don't get a phone call from the agent, I don't get a text that just says "I sent you
a contract", I don't get in the email, "Please confirm you've received the offer."
And this is a complete and utter disservice to the buyers.
If buyers only knew what went on, and this is why it is so important to hire the right
agent as I said before, and make sure that agent knows how to negotiate like a pitbull.
Because a lot of times – and you don't want to hear this, the agent says, "Oh well, you
didn't get the offer."
Well maybe you didn't get the offer because they didn't do all these four things.
So make sure they present it.
It's like going to court, you have to build a case.
The last thing I want to do as a real estate agent is to go out there, show buyers properties
for three hours, eight hours, whatever it is.
I mean some agents might do it for 40 or 60 hours.
And then the buyer finds the home they want and we are in a multiple bid situation and
my buyer doesn't get it.
I mean that is just – I do not like that happening, I get extremely competitive, and
the buyer does not like that happening either.
So make sure your buyer presents it and builds a case.
Okay, the second thing is have your buyer write a clause in the contract to escalate
the price.
This is very important especially if there's multiple offers, maybe not just one other
offer but two or three or four.
Because basically, what's going to happen is the sellers are going to basically throw
a knife in the room and see who comes out standing.
And a lot of times, it's not always about price, it may be but it may not be.
So you could have your agent carefully craft a clause to escalate the price so you could
have your cake and eat it too.
Now there are some states where this is not allowed, but if your state does allow this
and the agent knows what they're doing, this is very, very effective for you winning the
multiple bid situation.
Next is – I know this sounds a little unusual, but write a letter to the seller.
A lot of times when people are selling their homes, it's not just about the money; some
people it is, if they are a business, maybe if it's in a trust or a flipper or something
like that.
But a lot of people, they really want to know who is going to be buying their home.
And I've had sellers, and I tell sellers to do this – buyers, write the seller a letter.
Tell them hey, this is what we like about the home, we have so many kids or whatever
and just write a short letter, maybe it's a paragraph.
I've seen agents do this, on my listings, every blue moon they will do something like
this and it really, really works.
It sounds a little silly or it may sound a little silly, but it's very effective.
And the last thing, if you are getting a loan, have the lender, your lender, pick up the
phone and call the other agent.
Because the other agent and the seller, they are going to have three questions; is the
buyer ready, willing and able?
And a lot of times, having the lender take the first step in calling the listing agent,
this is going to give the listing agent a lot of confidence in you as a buyer and they
are going to pass this on to the seller.
So these are four things you need to do.
If you have any questions or anything else you could think of, please write a comment.
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Have a wonderful day and I hope this helps you.