“I don’t want to miss out again, I have been looking for 6 months and every time I find “the one” there is always a higher offer!”
Sound familiar? This is a story we’re hearing only too often in this market as buyers take time to educate themselves on values that can change from month to month. Nobody wants to overpay for a property (or car, or anything) but when the market changes rapidly (and you aren’t used to it) then it can be easy to find yourself using the wrong yardstick, and being left behind.
So what can you do to avoid missing out, particularly when you’re in a competitive situation with multiple offers submitted on your dream home?
First thing’s first and I can’t stress this enough – TELL THE AGENT YOU’RE INTERESTED! Time after time I hear about buyers that look at a home once, go away to think about it for a week, then come back and are disappointed to hear that another offer has been submitted and accepted in the meantime. Sellers, much like buyers, have their own FOMO – fear of missing out on the right offer – and can as easily make a quick decision on a contract (especially a good one) as wait and see what else might come in. A seller has no obligation to wait, and thinking differently can cost you. If an agent knows you’re keen and just getting the final ducks in a row, then you’re more likely to get an opportunity to put your hand up before the contract is signed or at least be able to make the call yourself if you still aren’t ready.
When it comes to multiple offers, different agents and agencies will have their own way of dealing with it but if you are told there are multiple offers submitted, then in this market I would be more likely to treat it seriously than not. Request a contract document, and if you are dead set on negotiating, then look to start closer to the finish line than the starting line - there are times when a cheeky first offer can serve you well, but if you are dismissed out of hand and don’t get the chance to make your next move then you’ll end up with disappointment.
Finally, its not all about the dollars. Ask the agent whether a specific timeframe might be preferred by a seller – I have seen lower offers win out by having tighter conditions and timing so the question can be worth asking!