Dealing with being out-bid

[Peter Lambert]

Hey Everyone,

I have been in the search for a 2 or 3 unit multi family in Manchester area for about a year now. I have found numerous properties worth putting offers in, but have been continuously out-bid. Does anyone have any strategies worth making that helped them get their first deal? I get that patience is important, but I am getting frustrated with the process and it feels like I am never going to get my first deal. 

Thank you,

Pete

[Josh Starner]

Hey Pete, 

Taking steps to ensure that not only your offer is competitive financially, but also is the strongest for the seller will help you stand out in today's market. 

I am seeing more and more of the following:

Waiving or adding verbiage for appraisal shortfalls, such as "in the event this property does not appraise at $300,000, the buyer will add an additional amount of down-payment to cover the appraisal shortfall capped at $20,000." 

With regards to inspection I am seeing "inspections will be for informational purposes only", or limiting the scope of the appraisal such as "inspections will be for oil tank and wood destroying insects only". While I do not recommend this, it is becoming more and more common especially for buyers putting lower down payments. 

Other things that I have noticed is buyers assuming responsibility for the CO or pay for the the transfer tax if applicable. 

Lastly, cash is king. If you have the ability to borrow or re allocate funds to make an all cash or mostly cash offer your offer will be one of the stronger ones based on the terms. This will guarantee to the seller that no only are you well qualified, but can often close quicker especially if it is all cash.  With this option you can delay financing by mortgaging the property after you close to pull your money back out. 

Good luck