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How to Get Your Offer Accepted in a Multiple Offer Scenario When You Need a Loan

Believe it or not, multiple offer scenarios are making a comeback in 2023. We are seeing them at all price points, but especially around the $300k-$800k range. Many people need a loan and cannot be an all-cash offer, so here are some things you can do to be the next best thing.

  1. Appraisal addendum- this states that if the house does not appraise for the price you stated you are willing to pay for it, then you would make up the difference with cash, and agree to still go through with buying the home. There are ways to restructure your loan if you do indeed need to use some of your down payment to cover the difference, should the house not appraise. There is also a partial waiver where you state you would cover it up to a certain price point.
  2. Who you choose as your Lender- this really does matter. The listing agent may not want to work your offer due to the bank you decided to get pre-approved with. Agents know which banks are a headache to work with and delay closings, and will most likely choose an offer with a local lender, with its own underwriting in-house, vs one with a big bank or an “order taker” lender that you can only reach with a 1-800 number. The listing agent wants to know if we can all get in touch with your lender if needed to avoid any last-minute hiccups.
  3. Amount you are willing to pay in earnest and option money- this shows good faith to the seller that you aren’t going to back out of buying the home, this is a seller’s worst fear. So if you put up a lot of earnest money then it helps them to pick you over the other offer that just did the typical 1% of the sales price.
  4. Seller is looking for the highest net, so take out all the little things to ask them to cover such as a home warranty, or shortages on the title policy. All of these little fees can add up and they would most likely pick the other offer that is not requesting all of these things. You can also pay for items that are typically a seller's expense, such as the title policy.
  5. Third-party financing addendum- this one goes a long way in my eyes. If you can’t be a cash offer, the next best thing is to be a financed offer with little to no days you need to get approved for your financing. So if you have gotten fully approved for the loan with your lender beforehand, then you can state on the financing addendum that this contract is not subject to buyer’s approval, and that helps make it stronger than if you are still needing say 14-21 days to obtain financing approval.
  6. How much money you are putting down. If there are two offers that are both for the same amount, they are going to choose the one with the more money down.

About Dripping Springs Elite Real Estate Professionals

Dripping Springs Elite is NOT a brokerage. It is a professional organization comprised of top real estate agents in the area from different brokerages who collaborate and work together to make buying and selling in their town the best it can be for their clients. DS Elite is also dedicated to building up our community and its nonprofits to strengthen the quality of life for all residents. Contact one of our agents today: https://drippingspringselite.com/#agents.