Winning in Multiple Offer Situations

As you may have heard, the Austin real estate market is going through what we call a “seller’s market.” This happens when the ratio of buyers and sellers is not balanced, meaning that there are more buyers in the market than there are properties available for sale. Fact: We live in the greatest city in the country. Another fact: We have to make competitive offers to compete against the rest of the folks vying to own a home in this great city. Here is a quick read to educate you on the implications of a seller’s market. 

TIME IS OF THE ESSENCE: When I see a home that is a great fit for my clients, I try to schedule a time to show the home to my client’s the same day it goes on the market. There are many pockets of Austin that boast an “average days on market” statistic of less than a week! This means we have to prioritize seeing the property as soon as possible to have a chance of making an offer for the property. When you strategically submit that offer will be an important conversation you need to have with your agent based on the information they have received from the listing agent.

PRE-APPROVAL LETTER TO THE LENDER:  An offer will not even be looked at if it does not come with a letter from a lender. Many folks like to put this off, but it gets stressful when they find THE home over a weekend without a pre-approval letter. They end up scrambling for a letter from their lender that typically doesn’t work over the weekends. In a multiple offer situation, we recommend submitting an offer with a local lender to make your offer most attractive. If it is a local lender, chances are the realtor knows their reputation, can meet them in person or on a quick call to be assured of the buyer’s qualifications, and feels more confident that a smooth and speedy closing will transpire with a local lender on the team. Please keep in mind the lender that writes your pre-approval letter does not have to be the lender you end up signing with on your mortgage. We encourage you to shop around, but we do want you to be aware of the significant advantages to going local. The lender many of our folks use is Max Leaman with the Primelending Leaman Team. Text or email me if you’d like me to connect you via email with Max! 

OFFER TERMS: There are so many levers, including offer price, to pull when submitting an offer that can help make yours most attractive. Each home will typically require pulling different levers that your real estate agent needs to walk you through. Here are a few levers you might not immediately think of when looking to write the most competitive offer. 

• Earnest money: the standard earnest money deposit is 1% of the offer price. This money is credited to you at the closing table. Our buyers will increase their earnest money past the standard 1% to show they are serious about purchasing the house. 
• Option period terms: a standard option period in Austin is 7 days for $200.00. To be more competitive, the buyer can agree to a shorter option period. This is the time the buyer gets to complete their due diligence on the home and back out of their contract for any reason. One can also increase the option money amount to the sellers. This money is what buys the buyers the option period as the seller has to take the home off the market and risk missing out on another buyer. 
• Closing date: If you have time on your side, make sure your agent asks the listing agent when the ideal closing date is for the seller. This is a “win” for the seller that will help your contract look more attractive. Sometimes, a timeline can be more important to a seller than more money. If your timeframe allows, don’t take the risk of losing a deal on the perfect home because you didn’t cater to their timeline. Once your agent relays the seller’s ideal timeline to you, be sure to check with your lender to make sure they can make that closing day happen on their end! 

LETTER TO THE SELLER: This may seem corny, but pulling at the seller’s heartstrings can only help you in a multiple offer situation. The Williamson Group has seen it work many times. Take the time to create a personalized template so that you can easily tweak it when it comes time to personalize the letter for the home/seller(s) you are addressing. If you need examples of letters, please email us at info@wgrouprealestate.com for examples that have aided my buyers in winning the deal. You really can win a home because of your story.

To learn more about the buying process, please email us at binfo@wgrouprealestate.com with any and all questions as I’d love to assist! Stay tuned for my next post about a case study of a multiple offer loss!