How To Win In Multiple
Offer Situations
Agenda
● Why All the Multiple Offers?
● Preparing to Buy
● Starting an Offer
● Writing a Winning Offer
 Price
 Financing...
Why So Many Multiple Offers?
● Massive inventory shortage
● Interest rates still at historical lows
Preparing to Buy
● Get Pre-Approved
► Get full underwriter approval (very rare)
► Have maximum approval amount on the lett...
Starting an Offer
● Knowing what to offer and being confident in your offer price
makes the process less stressful.
● Work...
Documentation
● Pre-Approval Letter
 Full underwriter approval is stronger
 Not a pre-qualification letter
● Proof of Fu...
Writing a Winning Offer
Offer elements to consider:
● Days on the Market
 Less than 14, less flexibility
 Greater than 1...
Financing Your Home
● Cash
 Cash offers can close in 7-10 days, very few
contingencies and no approval process.
 Stronge...
Redfin Preferred Lenders
http://www.redfin.com/buy-a-home/financing-your-home-
seattle
*In no way does Redfin
benefit fina...
Contingencies
● Loan Contingency
 20-30 days is standard
 Shouldn’t be shortened unless the lender can work
quickly or y...
Earnest Money
● Deposited with escrow within 2 days of offer acceptance
● Applied towards your down payment and closing co...
Personal Touch
● Write a heartfelt letter to seller
 A completely free way to make a HUGE difference
 Include a bit abou...
How Redfin Helps
● Redfin agents close more deals than an average agent. We
know the market and how to get the job done.
●...
A Little Bit About Who We Are
● Redfin is a real estate brokerage that has helped over
20,000 people buy or sell a home; 9...
Questions?
Email me:
jayson.haile@redfin.com
Thank You!
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Redfin's Free Multiple Offer Webinar - Seattle

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Redfin's Free Multiple Offer Webinar - Seattle

  1. 1. How To Win In Multiple Offer Situations
  2. 2. Agenda ● Why All the Multiple Offers? ● Preparing to Buy ● Starting an Offer ● Writing a Winning Offer  Price  Financing  Contingencies  Earnest Money  Personal Touch ● How Redfin Helps
  3. 3. Why So Many Multiple Offers? ● Massive inventory shortage ● Interest rates still at historical lows
  4. 4. Preparing to Buy ● Get Pre-Approved ► Get full underwriter approval (very rare) ► Have maximum approval amount on the letter ► Ask your lender to add your FICO score (if strong) ► Use a local lender or Listing Agent’s recommendation ● Sign up for Instant Alerts on Redfin.com ► Know when target homes hit the market right away ► Updated every 15 minutes from local MLS ● Tour Quickly ► Tour within a day or two of the home hitting the market ► Schedule home tour straight from Redfin.com or the app
  5. 5. Starting an Offer ● Knowing what to offer and being confident in your offer price makes the process less stressful. ● Work with your agent to do the following: ● Run a Comparative Market Analysis (CMA) ● Find your Maximum Price ● Calculate Payment Difference at Incremental Price Points ● Know When To Walk Away!
  6. 6. Documentation ● Pre-Approval Letter  Full underwriter approval is stronger  Not a pre-qualification letter ● Proof of Funds  Bank statement  401k  Brokerage statement ● Earnest Money Deposit Check copy
  7. 7. Writing a Winning Offer Offer elements to consider: ● Days on the Market  Less than 14, less flexibility  Greater than 14, more likely to negotiate ● List Price to Sales Price Ratio for the Area  Gives idea of negotiating room  Review Listing Agent past behavior ● Recent Comparables  Offer based on the comparables  Listing price may not reflect market price ● Short Sales/Foreclosures often use “computerized pricing”  Usually not much room to negotiate
  8. 8. Financing Your Home ● Cash  Cash offers can close in 7-10 days, very few contingencies and no approval process.  Strongest of all financing options ● Conventional  10% or more down payment. Few restrictions on condition of home, buyer has good credit.  Strong second best financing option ● FHA / VA  Least down payment (as little as 0%-3½%), lender may require repairs, longest closing period. Lower credit ok.  Also a viable financing option
  9. 9. Redfin Preferred Lenders http://www.redfin.com/buy-a-home/financing-your-home- seattle *In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
  10. 10. Contingencies ● Loan Contingency  20-30 days is standard  Shouldn’t be shortened unless the lender can work quickly or you are 100% certain that you can both obtain financing and cover an appraisal shortfall in cash ● Appraisal Contingency  Part of the loan contingency for financed offers  Lender may reappraise near end of underwriting ● Inspection Contingency  5 days is standard  Consider a pre-inspection or 2-day “pass/fail” inspection  Inspections can be scheduled quickly
  11. 11. Earnest Money ● Deposited with escrow within 2 days of offer acceptance ● Applied towards your down payment and closing costs ● Could be in jeopardy if you cancel after removing contingencies ● A higher deposit makes for a stronger offer ● Consider a “nonrefundable” earnest money strategy ► Also known as an “as-is” offer ► You agree to take the house just as you see it with no contingencies. Very risky without a pre-inspection. ► If you have to cancel for any reason, you lose your deposit (it’s “nonrefundable”). ► Makes your offer VERY strong!
  12. 12. Personal Touch ● Write a heartfelt letter to seller  A completely free way to make a HUGE difference  Include a bit about you, your family, your profession  Tell them why you love their home and what it will mean to your family  Include a photo or two ● Won’t help with a short sale or a bank-owned property
  13. 13. How Redfin Helps ● Redfin agents close more deals than an average agent. We know the market and how to get the job done. ● Help determine market price  CMA, trends and stats  Redfin Pricing Tool ● Understand the listing agent’s negotiation style  Average discount, market time and offer process ● Write crisp, clean contracts quickly  Electronic signatures (some foreclosure agencies do not accept these but 95+% do) ● Established relationships with listing agents ● Team structure allows agent to focus on writing your offer
  14. 14. A Little Bit About Who We Are ● Redfin is a real estate brokerage that has helped over 20,000 people buy or sell a home; 97% would refer us to a friend. ● Customers, not commissions ● Informed decisions ● The right home for the right price ● No obligation ● Get back a portion of our commission
  15. 15. Questions? Email me: jayson.haile@redfin.com
  16. 16. Thank You!

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