So as most of you know, there is a lack of inventory especially in certain cities around us that is going to have you competing against multiple buyers if you’re trying to buy a home. A balanced market is going to be 6 months of inventory. So anything above 6 months of inventory is a buyers market, and anything below 6 months of inventory is a sellers market. To put that into perspective, in Novi we are at about three to two and a half-ish months of inventory, but a city like Livonia has less than a month of inventory.
So like I said before, at certain price points, specifically 150-350, but here 200-300 its that really really really sweet spot where you’re prolly going to be competing with multiple people.
Below are 5 ways to win a home in a multiple offer situation:
#1 PRICE
Obviously, pretty simple. 90-95% of the time price is going to matter the most to the seller. There going to obviously want to net as much money as possible so we want to make sure as buyers that we’re putting our very best foot forward right from the start.
#2 CLOSING DATE / OCCUPANCY
So, closing date. If the sellers need to find a home and still haven’t found their home and want to push closing off 45 or 60 days, can you accommodate that? Or if they’re looking to get out right away and want to close in 30, are you able to be flexible enough to do that as well?
Same thing goes along with occupancy. So occupancy is from the day of closing, how long you give them after closing to get out of the house. So can you accomodate 30-45 days or is that going to be not an option for you?
#3 CONTINGENCIES
How many contingencies do you have in the deal? Do you need to sell a home, another home, before you can buy this home? Do you need cash back from the seller? Do you need them to contribute towards uhh your closing costs? All those things there are going to create little bit of road blocks for the seller. So, the less contingencies, the better the deal.
#4 EMD
So EMD is what we call “Earnest Money Deposit” or your ‘skin in the game’. That’s what you have invested into the deal so if you’re at a certain price point and the average people are putting down is $2,000 well can you put $3,000 or even $3,500 to show them that you’re more invested and you’re serious about buying this house? It’s just another way to stand out against your competition.
#5 WRITE A LETTER
So, people always have different opinions on writing a letter. Some people say you should never write a letter, some people say you should always write a letter. I’m in the boat of you choose what you feel. If you love a home, and you want to talk directly to the sellers, write a letter and let them know why you love their home and why you’re in it. Now that doesn’t guarantee that you’re going to get the home, at all, because at the end of the day like I said earlier, price is king usually. But, they might have a soft spot and you might pull some heart strings that that letter does separate you from the other people if you guys are pretty close.
So I hope that you guys think that these five ways to win a home in a multiple offer situation was useful. If you enjoyed the video, please like, comment, and share it. And we will see you guys on the next “2 Minute Tuesdays”. Have a great day!
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About the Author: This article was provided by Daniel Naurato. Daniel is a realtor in Metro Detroit and a leader in the field of real estate marketing. If you are in the market to Buy or Sell a home in Metro Detroit, he can be reached at NauratoRealEstate@gmail.com I have a real passion for helping people buy and sell homes in Michigan. I primarily serve the following areas: Northville, Novi, Plymouth, Livonia, Canton, South Lyon, Farmington Hills, and Birmingham.
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