When it comes to buying a home, most people assume that the biggest offer will always seal the deal. But in reality, that’s not always the case. In fact, sellers often consider more than just the dollar amount on the contract. There are many other factors that come into play.
Conditions
Fewer conditions means there is less reason for the seller to back out. This may be building & pest inspections, due diligence, finance conditions, just to name a few. If there are two similar offers but one has fewer conditions that the other, likely the seller will choose the offer with the fewest conditions
Settlement period
Different sellers have different reasons for selling a home. Some just want the higher offer but some are in a hurry to sell a home. This becomes especially important if the seller is also purchasing another home and requires to sell their current home before their purchase. In this case, offering a settlement period of 30 days, or even less, can put you as a front runner even if your offer is not the highest. We had a client who was bidding for a development property listed for $2,100,000. The competing offers where in the range of $1,900,000 and above but our client was able to secure the property for $1,750,000 simply because his settlement time was 1 months whereas the other bidders had a settlement period of over 6 months.
Certainty & confidence
When putting an offer, you want to present the vendor with assurance that you are well-positioned to purchase the property. Many sellers want a smooth and hassle free experience. If you have done your homework in the property and got your financial affairs in order, you will present yourself to the vendor as a strong choice who will give them a hassle free experience.
Don’t be a type kicker
Experienced real estate agents can feel out who are the tyre kickers and who are serious buyers. When presenting offers to vendors, real estate agents may advise the vendor which offers will be a hassle with the buyers asking for last minute repairs, extensions from being underprepared and ask for more than what is stated in the contract. Though it won’t be presented to the vendor on paper, being serious about your offer, especially when dealing with real estate agents could have a profound impact on winning the home.
Being a serious bidder will mean more often than not real estate agents will give you an opportunity to re-bid if unsuccessful OR assist you in finding other properties.
In competitive markets, don’t just think about price. Think about positioning. The strongest offer is the one that gives the seller confidence—and that might just be yours.
