NAVIGATING A MULTIPLE OFFER MARKET IN 2023

By: Mark H. Stowers

Buying a home? Welcome to the competition with other buyers due to low inventory. Selling a home? Welcome again to sifting through multiple offers to find the right one. Both sides can be a confusing and grueling tedious task just to get to the dotted line for both buyer and seller. For those navigating the real estate market, get helpful information from experts. Darrin Roberts is a listing agent with Jim Shaffer and Associates and sees both sides of the equation. And he offers some help.

“On the list side, it’s advantageous for sellers to sell now because inventory is so low. My strategy is for them to list at a true market value or just a hair below to show we’re not trying to stretch our pricing. That will get us into a multiple offer situation,” Roberts said. “I’m one to be a fair market value and let the market multiple offer situation take place.”

Placing yourself in the right position to start is key in creating negotiation room as a buyer.

“The hardest part of being on the buy side is having extra funds. That tends to be a struggle for some because they have their down payment and closing costs but that doesn’t leave them with a ton of leftover money to be writing a ton over asking.”

One way to sweeten the deal without giving the most amount of money includes asking for 60 days of free occupancy or an information only inspection with a cap on repair costs.

“If you’re pre-approved for $300,000, I’m an advocate of not going to the top end of their budget. I stress in looking at the $250,000 range. The down payment will be less and will give you more money in the bank to do the inevitable of going over asking. I’d rather the buyer be at a comfortable payment with a little money left in their pocket.”

Looking at the buyer side, a knowledgeable agent is key.

“You need an agent who is truly educating you on ways to win in a multiple offer situation and an agent that is readily available. We strive off the motto ‘yes, how?’ If I can’ show a home I have an assistant who will.”

Honesty, to Robbins, is always the best policy. When writing offers, he lets the seller know just how many offers.

“People are shopping the offers and I ask for highest and best meaning give me your highest and best. I’m not going to sit there and counteroffer and shop your offer around. I present offers as they come in. Oftentimes, agents will take my offer on the buy side and make a decision for the seller instead of keeping the seller involved in what’s going on. People forget that we all work together to get to the closing table. We all have the same goal in mind so let’s work together.”