Herman and Davis Properties

Tag: bidding wars

  • 5 Tips for Sellers in a Multiple-Offer Situation

    5 Tips for Sellers in a Multiple-Offer Situation

    When homes go up for sale in a hot market like Hilton Head, buyers sit up and take notice. In some cases, these in-demand properties can even receive multiple offers—which is great news for the sellers involved. It means more options, better leverage when negotiating, and (hopefully) a very impressive sale price. That said, these situations aren’t always straightforward. As a seller, you may be unsure of how to get the most out of the interest you’re seeing in your home.

    If you’re lucky enough to receive multiple offers, here are a few tips for reaching an outcome you’ll be more than happy with…

    1) Know your options

    No doubt about it: having buyers compete for your home puts you in a very good position. It means there are several potential paths you can take, as opposed to just one. You can accept an offer right off the bat, negotiate with one home hunter and reject the others, or ask all of the buyers involved to make their best (and final) bids.

    At the same time, we know these situations can be tricky. The goal is to get the best price possible, without turning bidders off and having them look elsewhere. Luckily, an experienced agent can help. We’ve been through the process many times, and we know how to advise you based on your circumstances!

    2) Remember: it’s not all about money

    It’s all too easy to reduce every offer to dollars and cents. Of course, money will probably be your biggest motivation—but that doesn’t mean the highest bid is always the best one. The truth is, there are times when two offers are close, but the slightly lower one will lead to a better outcome.

    Let’s say a buyer is willing to pay in cash. Even if their bid isn’t the highest on the table, you may want to accept it if you’re looking for a low-hassle transaction. If they don’t include any contingencies (which allow buyers to back out of a purchase under certain conditions), it could mean fewer obstacles on the road to closing. The point is, there are many elements to an offer, and each one deserves due consideration.

    3) Look at financing

    Good bids look great on paper. But there are times when buyers can’t quite fulfill their promises. Often, it’s because the mortgage they’re expecting to receive fell through. That’s why it pays to look closely at which offers are coming from qualified buyers.

    The good news is, there are ways to determine which home hunters are most likely to make it to the finish line. Mortgage pre-approval, adequate income, good credit, and a sizeable down payment can all be good signs. While your agent may not have access to a buyer’s full financial history, they’ll use what they do have to paint the most complete picture possible.

    4) Consider your home’s value

    Here’s something many sellers don’t know. If an offer is too high, the deal may not close successfully! That’s because lenders rely partly on a home appraisal when they decide how much financing to give a borrower. If your property’s value falls short of an offer you’ve accepted, the buyer will have to make up the difference. Of course, they can’t always do that.

    When you have multiple bids to choose from, it makes sense to do your due diligence. If your agent looks closely at an offer and realizes it might not lead to a successful sale, you have others to fall back on.

    5) Work with a negotiation expert

    Often, home sellers have to undergo a lot of back and forth with a buyer to get the best possible price, terms, and conditions. When there are multiple offers involved, it could mean even more time around the negotiation table. Of course, some sellers find this process stressful—but it doesn’t have to be.

    An agent who understands the market and the purchase process can help you make the most of your offers. That said, there’s more to it than real estate expertise! You also want someone who has that special ability to read situations—and the dedication required to act as your advocate.

    When it comes to multiple-offer scenarios and bidding wars, we’ve been on both sides of the table. We know they can be hard on buyers, but sellers often deal with their fair share of stress, too. Fortunately, with the right strategy, you can turn all of the interest you’re receiving into a major win. All it takes is some guidance and support from the right real estate expert!

    Ready to sell your home on Hilton Head? Get in touch—we’ll walk you through the process and help you find the ideal buyer!

  • 5 Tips for Home Buyers in a Multiple-Offer Situation

    5 Tips for Home Buyers in a Multiple-Offer Situation

    No doubt about it: Hilton Head real estate is a hot commodity. Home hunters come from all over to find their ideal Lowcountry properties—and once they do, the competition is stiff. Unfortunately, squaring off against other buyers for a house or condo can be pretty stressful. The good news? If you fall in love with an in-demand property, the outcome isn’t entirely up to fate. By making the strongest offer possible, you can maximize your chances of securing the home of your dreams.

    Without further ado, here are our top five tips for coming out on top in a multiple-offer scenario…

     

    1) Get pre-approved

    Three words: obtain mortgage pre-approval. Whenever possible, we tell buyer clients to get pre-approved before they enter the market. During this process, a lender will look closely at your financial situation to figure out just how much financing you’re likely to get. While many home buyers skip this step, it can make a huge difference in the eyes of sellers.

    A pre-approval letter shows you’re serious about making a purchase. It says you’ll almost certainly have the funds to make it to closing. In a competitive situation, that kind of dependability can set you apart from other buyers.

     

    2) Make your best offer first

    At the offer stage, we often advise leaving room to negotiate. This strategy can lead to a better price and more favorable purchase conditions. But there are also times when you should offer as much money as you can right out of the gate—like when there are other motivated buyers in the mix.

    The truth is, sellers don’t always want to go through a long, drawn-out negotiation process. When they already have some great offers on the table, they’ll often just go with the highest bidder. Of course, that’s not always the case. A seller’s reasons for choosing one offer over another can be complex, so it pays to work with an agent who has experience with these types of situations.

     

    3) Forgo unnecessary contingencies

    Many home hunters don’t know what contingencies are, but the idea behind them is pretty simple. In the most basic terms, they enable you to back out of a deal if certain conditions aren’t met. For example, if there’s a financing contingency in your contract and your mortgage falls through, you won’t have to go through with your purchase. These stipulations can protect you—but they can also make the path to closing more complicated for sellers.

    Reducing the contingencies in your offer (or removing them altogether) can help you simplify the process, which could give you an edge over other buyers. Just be sure to talk to your agent to assess the level risk involved for your circumstances.

     

    4) Consider making a cash offer

    If it’s a possibility for you, consider offering to buy your dream home in cash.  It may sound a bit odd, but there’s a reason why sellers like these types of offers so much. They tend to be both quick and relatively simple—which is why buyers who make them often have a huge advantage.

    Since there’s no lender involved in a cash offer, there’s no mortgage processing time. There are also no unpleasant surprises to hold things up at the last minute (something that happens all too often with home loans).

     

    5) Work with the seller’s timeline

    Cold, hard cash is the deciding factor for most sellers. But for many, convenience matters—a lot. That’s why we always aim to get a sense of a seller’s timeline. If they’re relocating for work or family, it’s usually short. On the other end of the spectrum, some sellers prefer to move at a more relaxed pace. Either way, if you’re willing to work with their schedule, they may be more likely to accept your offer. Be as flexible as you can!

    We’ve helped buyers navigate enough multiple-offer scenarios to know they can be stressful. Having said that, the possibility of a bidding war doesn’t have to impact your life in a negative way. We suggest doing everything you can to strengthen your offer—and up your chances of getting your dream home.

     

    Have questions about buying a home on Hilton Head? Get in touch—we’ll walk you through the buying process and give you an idea of what’s available on the market!