Most buyers would like to think that their offer being lower in price was to blame for losing out in a multiple offer situation. In reality there are a few key factors that may have actually put the nail in the real estate deal coffin.
Your financing terms. Sellers love nothing more than an all cash offer but most real estate transactions do involve financing of some sort. The more you’re able to put down towards your down payment the better you’re seen in the eyes of the seller.
Your closing date. An extended closing date is usually seen as a negative to sellers but if you’re flexible consider asking the seller what their preferred closing date is and matching it in your offer. Include the earliest possible date that you are able to move into your offer – AFTER confirming the date gives your mortgage lender enough time to close the transaction.
Contingencies. Contingencies are like little gray clouds hovering over your real estate transaction, looming and threatening the deal. And until they are removed to float away into the sunset, does your transaction have any hope of closing. Keeping your offer “clean” often means less contingencies and a better chance of acceptance. Consulting your Realtor about which contingencies are smart to uphold and which ones to toss, (if it’s possible) is a necessity.
Earnest money. A typical earnest money amount would be at least 1% of the offer price. If you’re in a multiple offer situation, double that amount if you are comfortable doing so. This will show the seller you’re serious, financially stable, and committed. If your offer is accepted the earnest money will go toward your down payment and closing costs anyway.
If you’ve had an experience with a multiple offer situation as a buyer or seller I’d love to hear from you about how you handled the situation.
I am a licensed Realtor with Edina Realty in Minnesota.