A Note from Dan Elsea, President of Brokerage Services

Many of our buyers have been struggling to find the right home. When they do, they are typically competing with multiple offers. To get ahead of this game and help our clients get the homes they want, we need to coach them.Year-to-date, through May, 51% of homes in our Southeast Michigan market have been selling in 10 days or less. 44% of sales have been at or above asking price.This infographic helps tell the story. Feel free to download it and share it with your clients directly or share it to the world through your social media. 

10 Tools for Helping Your Clients with Multi-Offer Situations

1. Cash Offer—Cash is king and eliminates potential risks perceived by seller. Not everyone has the luxury of paying cash, but don’t overlook this possibility when discussing options with buyers.
2. Escalation ClauseThis method is intended to squeeze out the competition by offering “$xxx” more than any other offer received. Be sure to include a ceiling cap, and you may run the risk of the appraisal coming in short—our next point.
3. Appraisal WaiverIf your client has the financial ability to put more down, the offer might include “not subject to property appraising for value”. Be sure buyer and lender are on board with this prior to making such an offer.
4. Extended/Free Seller OccupancyWith fewer homes on the market, sellers may need time to find their next home before they can move. Offering to extend post-closing occupancy, or letting the seller stay for free might sweeten the deal.
5. Letter from Buyer to SellerBuilding a connection and making the transaction more about the people than the money sometimes helps a buyer gain an advantage. Keep it short, stay positive, and thank the seller for considering your offer.
6. Larger EMDMoney talks. Increasing the EMD sends the message that your client is committed. It helps reduce the seller’s risk that the transaction will fail.
7. Inspection WaiverYou don’t need to completely waive the inspection if you arrange to have your buyer bring the inspector on the initial showing. Do an abbreviated inspection during the initial showing so it’s taken care of before going under contract.
8. Increase DownpaymentThe larger downpayment reduces risk to the seller that your buyer will run into financing issues while completing the transaction.
9. Strong Pre-ApprovalThe fewer contingencies in the approval letter the stronger it will be. Some pre-approval letters have more holes than Swiss cheese. Work with your client and their lender to make sure yours doesn’t.