Congratulations! \u00a0You successfully completed your flip and now ready to market your property!\u00a0 It’s a hot property, in an even hotter area. \u00a0The listing goes live and within 24 hours you have multiple offers flowing in with promises of more.\u00a0 No, this isn’t a dream, and there is no need to pinch yourself. \u00a0You’ve got more work to do and here is where it get’s really interesting. \u00a0Things can become quickly convoluted when dealing with a multiple offer situation.\u00a0 Here’s some suggestions that has worked for us in our business:<\/p>\n
WAIT! <\/strong>…before you begin to respond.\u00a0 If you have a desirable property and know that you are more than likely going to get multiple offers, let prospective buyers know that no decision will be made for 24-48 hours.\u00a0 We like to list on a Thursday so it’s nice and fresh for the weekend.\u00a0 If it’s a hot property, we let agents know that a decision will be made Monday morning.\u00a0 I suggest that they submit their highest and best by Monday morning at 9:00 am, and that a decision will be made by noon.\u00a0 They will respect you for communicating and will also understand that you are simply trying to ensure you have the best offer for the property.<\/p>\n ANALYZE!<\/strong>\u00a0…the offers completely.\u00a0 The highest offer is not necessarily the best.\u00a0 Check out their financing<\/a>. \u00a0Pay attention to things such as option periods, close dates, and if they are asking for any concessions towards closing costs.\u00a0 Remember, every item affects your bottom line, even TIME. \u00a0If you have your property financed the closing date is very important. \u00a0Not only are you carrying the property with taxes, utilities, & insurance, but also with interest. \u00a0We’ve had agents submit a full price offer and then ask for the moon between closing costs, surveys, residential service contracts and closing cost concessions. \u00a0Oftentimes the “sales price” is our full asking price, but they\u00a0are in essence asking us to discount the property $10,000. \u00a0Then the conversation that I dread follows… \u00a0When we come back and adjust the sales price to compensate, I always have to explain to the agents that although they did offer full asking price, the sellers bottom line is $10k lower. \u00a0Every property and situation is different, so scrutinize every offer!<\/p>\n COMMUNICATE!<\/strong> …clearly and straightforward! \u00a0Whoever is fielding the offers and phone calls must be able to communicate effectively with prospective buyers\/agents for your stellar property.\u00a0 Many people hear only what they want to hear.\u00a0 That is why our company created guidelines for submitting offers that we upload to the MLS for every listing.\u00a0 This way I can point agents to that document.\u00a0 It answers many of their questions and frankly it’s something we look for when receiving offers.\u00a0 We know immediately whether or not they’ve read it and paid attention simply by what title company they have listed on the offer. \u00a0This important step will eliminate many distractions with extra phone calls and questions so you can focus on the offers at hand!<\/p>\n MOTIVATED SELLER:<\/strong> Let’s take a look at a situation where you find yourself as the buyer.\u00a0 You may either be making an offer on a property that is priced aggressively on the open market or a property where the homeowner has contacted several investors.\u00a0 The best piece of advice I can give you is cleanliness!\u00a0 Keep it simple.\u00a0 Again, it’s not necessarily the highest bid that will win out.\u00a0 Find out what the homeowner is desiring for a close date.\u00a0 Offer flexible terms, perhaps a lease back if necessary.\u00a0 Consider including in your offer the option for the homeowner to leave behind any trash or unwanted items,working that cost in your offer price. \u00a0Most of the time a motivated seller will exchange convenience for money, so try to dig and find out what are the needs of the seller. \u00a0Many times these items are what will attract the homeowner to your offer and you will find yourself with an accepted offer.<\/p>\n REO:<\/strong> If you are making an offer on an REO or short-sale, I can not stress enough the importance of reading all instructions.<\/strong>\u00a0 Most, if not all, listings that are foreclosures or short-sales\u00a0will have detailed instructions on how to submit an offer. \u00a0To even be considered as a buyer, you must follow the guidelines. \u00a0I welcome REO listing agents for their input on getting offers on bank-owned properties.<\/p>\nTips for Making Offers on a Hot Property<\/h2>\n