We are living in interesting times and an interesting real
estate market in Downtown Los Angeles where the
supply is outweighing the inventory and overseas investors are grabbing all the great buys with cash offers.
For first time buyers, the idea of making an offer on a
unit with multiple offers can be daunting. There are
some proven negotiation skills that will put you in front
of your fellow buyers and win you the home of your
dreams!
While money talks, most sellers are interested in the
overall picture including the buyer profile, financial documents actual offer and other pertinent information.
Sellers with good agents will do their homework before
grabbing the highest bidder. Sometimes going for the
highest price can find the seller with a risky investment
that will not close escrow in the end.
So as a buyer in a multiple offer situation what can you
do to win the bid?
Offering an increased deposit is a definite way to catch
the seller’s attention. If you put up a larger deposit
amount versus the standard percentage it goes towards your down payment any way and is money that
is well spent.
Most experienced real estate agents or brokers will
suggest that you send in your “proof of funds” with
your offer. If you have a cash offer this means a bank
statement with the proper amounts showing or showing a pre-approval letter from the bank if you are seeking a loan.
Giving into the seller’s requests, for example a longer
move out period or a quicker escrow can help move an
offer along.
While going in with your best offer first seems risky in
a competitive situation where you need your offer to
shine, not beating up the seller and showing your cards
can be the best way to move into a final deal. Everything’s negotiable, right?
Don’t forget to do your homework or hire a real estate
agent that is an expert in your area to do it for you.
Knowing the values of the properties in your area is key.
Sometimes sellers price their homes below market in
an effort to attract multiple offers. Having this information at your fingertips is priceless. Well, not exactly
priceless, but can save you money! When you have
an idea that the seller is seeking multiple bids your real
estate agent or broker can help you put your offer in
above the asking price and within market value so you
are in a great position. In these cases you don’t want