Navigating A Multiple Offer Situation in Today’s Real Estate Market
Here is some advice for having your offer stand out in a crowd during a multiple offer situation.
Bennion Deville Homes has put together some tips for successfully navigating a multiple offer situation so your offer is accepted on your new desert dream home.

Interest in calling the Greater Palm Springs Area home remains at an all-time high thanks to the desert’s value, affordable lifestyle, proximity to other major SoCal destinations, and low population density. With the real estate market simmering as the summer months go on, traditionally a quieter time of the year, and a shortage of inventory, many homes for sale are running into a multiple offer situation. In this case, there are numerous interested parties who want to snap up that property, giving the seller a choice of offers to select. So what can you do to position your offer to be as enticing as possible? As this trend continues in the local market, we wanted to offer a few tips for homebuyers who are looking to make their move now.

First and foremost, speak with your trusted, local real estate professional. They are tapped into the industry and can help in many ways, including some of the suggestions we outline below. They may have a history with the listing agent who is representing the seller that can be leveraged in your favor. They will also have additional ideas and creative solutions of how to navigate your situation to make sure you put forth your best effort in securing your desert dream home.

Here are some suggestions for strategies that our agents have used to deliver successful results for their clients:

Come Pre-Approved

Bring your loan pre-approval letter to the bargaining table to strengthen your offer.
Come with a loan pre-approval letter in hand so the seller knows you have the funds to close the deal.

Getting pre-approved by a lender makes your offer on a home that much stronger. Having a pre-approval letter in hand, as opposed to a pre-qualifying letter, elevates your offer as it signals to the seller that you are already good for the funds and have the ability to close on the deal. This is a huge factor when the seller decides which offer to accept.

Be Flexible With the Move-Out Period

Consider offering a flexible moving date with a couple of extra days included to entice the seller into a less stressful closing process.
If you can be flexible with moving dates, considering giving the seller a couple of extra days to alleviate the stress of juggling multiple real estate transactions at once.

In light of everything happening in the world on top of the stresses of trying to simultaneously buy and sell multiple homes, being flexible with the seller about when you take full possession of the home can be huge. Even an extra 2-3 days of time can be the difference in making the moving out process smoother for them. If you are in a position to offer an extra couple of days occupancy without compensation, consider including that in your offer to show that you are not only serious about buying the home, but also considerate of the current owners and the impact moving, and juggling multiple transactions, can have on them. This relief of pressure, both emotionally and with the stress of moving, might help your offer stand out.

Come With Your Strongest Offer Up Front

Bring your strongest offer up front to ensure yourself the best chance of having your offer accepted.
In a market with multiple offer situations becoming prevalent, be sure to bring your strongest offer to the table in order to give yourself the best chance of having your bid accepted.

In a housing market with tight inventory, chances are you are not the only party considering an offer on that home you absolutely have to have. To give yourself the best chance to come up with the winning bid, bring your strongest offer – within your budget – up front. Additionally, you should ask your agent to prepare a Comparative Market Analysis (CMA) on the home so you know its value in the current market. With this information in hand, you may be able to write an offer that’s over asking price but still within fair market value for the home. Chances are the other bids coming in will be at or just below asking price – as long as you don’t overcommit or overbid the home’s value, you can still get a good deal.

Consider Using a Price Escalation Addendum only with the guidance of a REALTOR®

If you really want to stay in the hunt for your dream home, consider using a price escalation addendum, an instrument that allows you to go up to a certain price threshhold.
Consult with your REALTOR about using a price escalation addendum to stay in the bidding for the home.

An escalation addendum or clause is a contractual provision that allows a prospective buyer to say: “I will pay X price for your home, but if you receive another offer that’s higher than mine, I am willing to increase my offer to Y price.” In theory, an escalation clause is fairly simple. In practice, there are a lot of details that must be considered before using this approach so be sure to consult with your REALTOR® before employing this negotiation tool.

If you are looking for a home in the Greater Palm Springs Area, connect with your local Bennion Deville Homes REALTOR®. We look forward to unlocking possibilities for you.

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