So you are touring possible Minneapolis homes for sale and finally walk into the house of your dreams. You run through every room three times just so you can make sure all your furniture will fit. The trusty real estate agent you hired writes up an offer to purchase and delivers it to the seller, while you sit back and dream of your new home.
Then the phone rings…it’s your agent telling you she has just learned another offer has been submitted. As you start to visualize your dreams come crashing down, your agent tells you to hold on a minute, there might be a solution to getting your offer accepted. At least this is what I would tell you, however, not all agents are familiar with multiple offers or what to do about them. Here is one solution to consider:
- write up the offer with the purchase price you are most comfortable paying
- next, add an addendum stating that you will pay “X” dollar amount above and beyond any other offer presented to the seller
- also, add a maximum dollar amount you are willing to go up to
- finally, add that if your offer is accepted, proof of the other offers purchase price be provided asap and have your approval before the final contract is executed
Here’s an example, we’ll use $100,000 as a simple calculation base:
You offer $100,000 on the home. You really want this home, so once you hear of another offer, write up a document that says you will pay $1000 above and beyond any other offers, up to a Maximum of $110,000.
Most agents and buyers submit an offer that just gives a purchase price. An example is when the listing price is $100,000, but you offer $110,000 above it just to get the home. The major problem with this scenario? What if no one else ever puts in another offer? Now you just paid $10,000 more for a home you could have gotten for $100,000!
However if you do what I suggest, not only will it help you save money, but it also keeps the seller honest. I hate to say it but I have encountered instances when a seller has lied about multiple offers just to get a higher price for the home. In these cases, if you don’t have something in the contract requesting proof of those other offers, you are out of luck.
Multiple offers don’t happen all the time, but you should always be aware of real estate solutions available to you should the need arise!