Multiple offers are alive and well in Seattle!
Amazingly, the Seattle real estate market is on fire once again. In 2005 and 2006, real estate sales were booming in Seattle and around the country In the last 6 months the real estate market in the Greater Seattle area including Snohomish County, has experienced a tremendous shift. One that even the experts have not seen before. Our inventory levels are at an all time low with a significant upswing in sales – thus creating a feeding frenzy! Any home that is “move-in” ready – whether it is a traditional sale, an REO or bank owned, or a short sale, is getting snapped up if it is priced properly – AND most have multiple offers!
Please don’t misunderstand me, the occasional deal is there to be had, but the fact remains that it is a matter of supply and demand. In fact, many buyers are surprised that there are multiple offers on that Seattle area home that they want. And with good reason too!
Why are there multiple offers on that $300,000 home?
When a home is priced correctly – especially in the Seattle area, there are usually multiple buyers interested. Why? Savvy buyers and investors have been sitting on the sidelines just waiting for that deal to show up. They have done their homework and they know the market so they are ready to pounce on a home the minute they find it.
So, how do you win when there are multiple offers?
Real Estate is local and there are still areas where the market is competitive – where houses sell quickly and still get multiple offers. The key to your success when entering into a multiple-offer situation is preparation. That means you need to:
- Have an experienced Buyer’s agent working with you – this is crucial – you need a skilled negotiator!
- Have a solid understanding of the Seattle Real Estate Market – or, hirer an a Buyer’s Agent that does!
- Have your funding set – your Mortgage pre-approved with a letter ready to attach to your offer
- Have your Home Inspector selected and on call to be able to do a Pre-inspection or to be available within 3-5 days of mutual acceptance!
- Be realistic with dates – or better yet, find out what the seller wants
- Be prepared to write a clean offer with little or no contingencies – do as much as you can up front
- Present an offer that has a high net for the seller
How Does the Seller Decide Which Offer To Accept?
Because there are so many points to compare when a seller looks at multiple offers, it is essential that your offer stands out. There are a number of things you can do to make your offer more desirable to the seller.
1. Purchase Price
A good real estate agent will have comparable sales information ready to review comparable with you. Your agent will have experience in the market and be able to offer advice but understand, ultimately you are the one deciding on an offer price that is comfortable for you and reflects just how much you want the house.
Don’t assume that multiple bids means the offers will go sky high – sometimes all the offers can be under the asking price. The comparable sales info and the amount of activity for the listing should give you some sense of how the offers might go.
2. Contingencies
The typical contingencies in a home purchase contract are financing, appraisal, home inspection, and satisfactory review of the condominium documents. You should have a letter of pre-approval from your lender ready to present with your offer. Be aware one strategy that some buyers may use is to drop any and all of their contingencies – making their offer more attractive to the seller. Know the risks involved in waiving the various contingencies!
3. Earnest Money Deposits
Expectations for earnest money deposit amounts vary in different states and regions. Talk to your agent about the norms in your area and consider increasing the deposit. This doesn’t cost you anything since the deposit will go towards your down payment. From the sellers’ perspective, however, it shows evidence of the seriousness of your offer.
4. Letter to Owner
A great, no-cost but often very effective tool is a letter to the sellers. Write about who you are, why you love the house, and how you’ll take good care of it. Mention any special things that stood out to you. If you can tell the sellers took good care of the house say so. If you like their decorating – mention that. Sellers will often remember and remark about the letter weeks after receiving it.
It is easy to get caught up in the frenzy!
Many buyers avoid the multiple offer situations because it is too stressful. Finding the right house is a tough task, and if you are looking for a particular home in a specific neighborhood, you may have no choice but to compete for every home that you like.
A multiple bid situation does not need to be scary or perceived as an impossible situation if you know how to position yourself properly. It is essential that you work with an experienced agent who will help you strategically position your offer to win. If it is even possible that you will be entering into a multiple bid situation, remember this is not the time to haggle if it is your dream home. You should put your best offer first, because you might not have the opportunity to negotiate with the seller. But be sure to not get caught up in the frenzy of it all. You have to be comfortable with the final price and terms, so set a price cap that you won’t go over, otherwise you might end up getting cold feet and regretting your decision.
Want to Buy, Sell or Invest in Real Estate?
Are you interested in buying a home? Stay on top of the market! We can send you real-time listings of area homes as they come on the market – find out how. Want to find out what your home is worth? Request a FREE Market Analysis TODAY! Contact the Knowles Team TODAY at (206) 588-8418 to discuss what is happening in today’s Greater Seattle area Real Estate Market. The Knowles Team will be happy to give you a personalized Comparative Market Analysis for your home or assist you in purchasing a home.
You must be logged in to post a comment.