Multiple offers for buyers of real estate

I thought this would be useful for buyers of real estate as multiple offers are so common at present.

These are the key items sellers will look at in offers they receive:

1- The offer price
2- The subject clauses
3- The deposit amount
4- The completion and possession dates.

So lets look at these in reverse order.

4- We normally have an indication of the seller's preferred closing so would try to accommodate their dates.

3- A higher deposit amount is preferred even though it does not make any difference to the final purchase price. However, if there are two offers that are very similar it could make a difference as the offer with the higher deposit can show a buyer that is more committed to the purchase.

2- The fewer the subject clauses there are in a contract the more attractive the offer will be to the seller. But you also need to make sure you have done all of your due diligence with regards to the property. The two subject clauses that cause more offers to collapse are for financing and a home inspection so if one or both of these can be removed the better the offer will appear to the seller. If you need a mortgage then you really need to include a financing clause and it is definitly risky not to include a home inspection clause. However if there is time it can sometimes be possible to do a home inspection prior to the offers being presented.
 
1- With regard to the offer price it is impossible to give a number as we do not know what price other buyers are submitting. I therefore always advise buyers that they should put in a number so that if they are successful they do not wake up the following morning and regret paying that amount for the home, but also if they are not successful they do not wake up the following morning and regret not going higher.  In other words you will need to 'put your best foot forward.'

Most times it does come down to the offer price but I have seen sellers take a lower amount when there were no subject clauses. 

To make an offer more attractive you can also include a personal letter, it should highlight why you like the home and can also give the seller a bit of a personal insight into you and your family.

If you require financing then a pre-approval letter from your bank can also help as it can reassure the seller that the offer amount is within your budget.

I hope this helps and good luck with the offer!
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Ian Hodson
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