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Get the Winning Edge: Strategies for Beating Multiple Offers in Today’s Market

Thursday, July 13, 2023   /   by John Salkowski

Get the Winning Edge: Strategies for Beating Multiple Offers in Today’s Market

     
Here’s my secret to helping clients win in multiple offer situations.


Recently, I successfully secured two buyers under contract within a week in a multiple-offer situation, all of which exceeded the asking price. Today I’ll share how I structured these offers. 


The first step is determining the maximum price the buyers are willing to pay for the property. Prior to submitting an offer, I always conduct a comparative market analysis (comps) for my buyers. This involves assessing recently sold properties in the neighborhood over the past three months. Once we have the comps, we discuss the pricing strategy and determine the best price they are willing to offer.


"These tactics have proven successful in winning all five offers I've submitted recently."


Additionally, I advise my buyers that they may need to waive the appraisal or provide appraisal gap coverage. To clarify, appraisal gap coverage comes into play when the appraised value falls below the offer price. For example, if they offer $300,000 on a property and the appraisal comes in at $280,000, there's a $20,000 difference. In this market, buyers often have to waive that $20,000 gap to increase their chances of winning the offer, particularly in the $300,000  to $500,000 price range where multiple offer situations are common.


Another winning strategy I discuss with my buyers is their willingness to cover the seller's 1% state transfer tax. In Pennsylvania, both the buyer and seller pay 1% of the property value as a state transfer tax. For a $300,000 home, this amounts to $3,000. Offering to pay this tax can significantly strengthen the buyer's position and help them secure the deal.


By implementing these three strategies, my buyers went above and beyond, exceeding the asking price by $15,000, waiving the appraisal gap coverage, and agreeing to pay the seller's state transfer tax. These tactics have proven successful in winning all five offers I've submitted recently.


If you're in the market to buy a home and currently working with another agent without success in multiple offer situations, I encourage you to reach out to my office. My strategies have a track record of success, and I believe I can help you secure the offer you desire.


If you have any questions or need further assistance with winning in multiple offer situations, please feel free to call or email me. There's no obligation or cost associated with reaching out. 
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