Seller wants multiple offers

4 Replies

I have an appointment with a seller coming up. He has several investors coming to look at the property at the same time and they will be making offers I am sure. What is the best way to handle this situation and improve my chances of getting my offer accepted over the others?

Make your offer as attractive as possible.  Remove any contingencies and close the fastest.

Cash deals are going to get the most favorable treatment.  Why?  They do not contain financing contingencies, and cash offers do not require appraisals.  They are faster and more likely to close (to not fall out).

If you are using hard money instead of cash, you are going to need to maintain as many of those elements as possible. Our company (HML) closes in as few as five business days. By focusing on this and the fact that it's a non-contingent offer, our borrowers (the buyers) have a good success rate at getting deals.

That said, the seller's agent may have been instructed to take the highest cash offer that is made.

You have a smart seller, unlikely to fall for any nonsense like a 30 day inspection period, a "partner approval" contingency, or a $100 EMD.

Make your highest and best offer.  Highest is self explanatory.  Best means no contingencies (or maybe an inspection contingency with some meaningful relationship to how long it actually takes to get inspections done, like maybe 5 days) and cash.  

Originally posted by @Allen Ayres:

I have an appointment with a seller coming up. He has several investors coming to look at the property at the same time and they will be making offers I am sure. What is the best way to handle this situation and improve my chances of getting my offer accepted over the others?

You want to be either the first person to make an offer or the last. In this situation, where everyone will have a chance, you probably want to be last. But, I would add, it would be good to meet him before he meets the others (assuming you haven't already met). That way you kind of get the best of both worlds and hopefully, know what number you need to beat. Then, the only really important thing is to know your strike price and not get caught up in the heat of the moment and try to "win". Stick to your strike price, even if that's not enough to get the deal.

Medium apartment logoAndrew Syrios, Stewardship Investments | http://www.StewardshipProperties.com | Podcast Guest on Show #121

I wish I could offer a 5 day closing and no contingencies but I just cant. I am new to this and dont have a ton of resources or buyers on my list. I can not say confidently that I could close that quick.