Buying a Home: Multiple Offers

With inventory lower in southeast Wisconsin, as a homebuyer, you will want to be prepared if there is a multiple offer situation on a property you’re writing on. These are some helpful tips to increase your chances of winning a multiple offer situation. Who you work with makes a difference.

Step 1:

Work with a highly experience, local Real Estate Professional who has represents buyers and sellers in the area in which you’re looking. It is imperative to work with an Agent who knows how to craft a winning offer – and explains the options available to you as a buyer. One seller may be all about the amount the seller nets, another seller maybe not and it is important not to assume. We have a won a lot of multiple offer situations for our clients – and not all were the highest price. Your Agent needs to be in the local market with the knowledge to best help you.

Step 2:

Be realistic, look at the big picture and make an informed decision. Rates are low, prices went up…but for buyers taking out a mortgage, the payment may still be lower than years prior with higher interest rates. Realize that the same house, if listed months from now, may be for sale for even more. Multiple offer situations usually lead to prices going up, setting a new precedent for values in that area. Of course, this depends on property type, price point and each particular market. Homes, for the most part, are selling quickly. As a homebuyer, you do not want to rush into making an offer; however, if you like a property, it is important to get an offer in as soon as possible. There is information, etc. your Agent should have – working in your best interest.

Step 3:

In addition to working with a very experienced, very knowledgeable, highly reputable and proactive Agent (hint, hint call Kristine Glockler), if you plan on taking out a mortgage, you will want to work with a highly reputable, local and experienced lender…especially for your loan type. Many sellers in the local market want to see pre-approval letters versus pre-qualification letters from a local, reputable lender that looks at all of the pertinent information before issuing a loan pre-approval letter. Also, a pre-approval letter has to be current (within the last 30 days), submitted with an offer, showing at least purchase price. If you’re a cash buyer, you will need a current proof of funds letter, also within the last 30 days showing that you have, at least, the purchase price amount ready and available. For more information about this, contact Kristine Glockler. (708) 480-2011.

Step 4:

With the help of your Agent, craft an offer that will increase your chances of winning a multiple offer situation by keeping in mind what’s important to the seller and what the lender needs as well. Think an offer with a quick close will “win” the multiple offer situation? Can your lender close that quickly (ask)? What if the seller can’t close for 60 days and doesn’t want a quick close? Don’t assume. The importance of working with an Agent with local market expertise is so importance, it bears repeating.

Being in real estate as long as we have, we have seen a lot. Offers not being correctly filled out on our listings, pre-approval letters or proof of funds letters not showing at least purchase price, someone asking how to write a winning offer on our listing because he didn’t know, someone not knowing what “terms” are in a contract and thinking highest price always wins and so much more.

If you’re looking for a highly experienced Agent in Lake Geneva, Fontana, Williams Bay, Geneva National or southeast Wisconsin in general who proactively works for you, has your best interest in mind and treats transactions like her own, call Kristine Glockler (708) 480-2011.

Kristine is licensed in Wisconsin and Illinois. There is so much that goes into increasing your chances of winning a multiple offer situation – and our clients have all the details to allow them to best stand out in multiple offers.