Southern New Hampshire Real Estate and Short Sales: Trying To Buy Southern NH RE? Here's How To Lose A Bidding War

Trying To Buy Southern NH RE? Here's How To Lose A Bidding War

As inventory becomes tighter and the Southern New Hampshire Real Estate Market becomes hotter, more and more buyers are finding themselves competing with other buyers in multiple offer situations, popularly (or unpopularly, as the case may be) known as "bidding wars". 

In several recent situations where my Southern New Hampshire Real Estate clients had numerous offers to choose from, I was surprised at some of the offers submitted.

Let me clarify here and say that, in each case, all offers were submitted by cooperating real estate agents on behalf of their buyer and all agents knew in advance that it was a multiple offer situation and they should present their client's highest and best offer by a certain date and time.

Here are five great ways to get booted out of the running in a multiple offer situation.

 

  • NUMBER ONE:  Offer $20,000 below asking price.  (Surely in a multiple offer situation on a property that has only been on the market a few days no one would be offering anything close to asking price, right?)

 

  • NUMBER TWO:  Have your agent reassure the seller's agent that you are "well-qualified" but don't submit any actual proof.  (No proof of funds, no finance letter...nothing.   Bonus points if you can get your agent to stammer and mumble when asked about the lack of documentation.)

 

  • NUMBER THREE:  Have your agent reassure the seller's agent that you COULD put 20% down but write the contract for 0 down.  (There's an  old saying, "if it isn't in writing, it doesn't exist".   Just because you COULD put 20% down, doesn't mean you WILL so the seller is going to evaluate your offer as written and look at you as a buyer who needs 100% financing.)

 

  • NUMBER FOUR:  Have your agent present a cash offer with you as the buyer and then provide proof of funds in someone else's name.  (We're really happy that Aunt Sally has a butt load of money but Aunt Sally would not be contractually obligated, you would be.  So either provide proof of funds in your own name or have Aunt Sally write the contract.)

 

  • NUMBER FIVE:  Make sure you clutter  up your offer with a laundry list of personal items you want the seller to leave...refrigerator, washer, dryer, riding mower, snow blower, generator, couch, loveseat, tupperware, etc.  (Bonus points if you also ask for things that the seller specifically excluded from the sale such as the  playhouse that was hand made by the homeowner's deceased father.)

I swear, I am not making this stuff up! 

The important take away from this post is that, with the exception of Number One, all of these buyers were knocked out of the running for reasons other than the price they offered. Losing In A Southern NH Real Estate Bidding War

So, if you are trying to buy Southern New Hampshire real estate (or real estate in any other area) and find yourself in a multiple offer situation, here are some tips:

  • Number One:  Have your financing ducks in a row so that you can provide valid proof of your ability to perform.

 

  • Number Two:  Be aware that the seller is going to take into account the type of financing you need because the seller is going to be concerned with which buyer has the strongest likelihood of actually making it to closing.   Generally speaking, the more a buyer is putting down, the more likely it is they will be able to get their loan.  So, if you can put 20% or more down, put that in the contract, it will give you a leg up on your competition.

 

  • Number Three:  If you are working with a family member to be able to pay cash for a property, work out the details in advance as to how you are going to present proof of funds, who is going to be on the contract, etc.  A seller is going to be hesitant to blow off other offers to take a cash offer when there is a chance that the person who has the money (but is not a party to the contract) is not going to part with it in the end (I've seen it happen, believe me).

 

  • Number Four:  Keep your contract as clean as possible.  Don't ask for things you don't absolutely need.

 

  • Number Five:  And, of course, don't lowball!  If you are new to the market and don't yet have a sense of values in the area, have your agent perform a market analysis on the property so you can feel secure that it is worth the asking price.

If you want help succeeding in buying or selling Southern New Hampshire real estate, you can reach me at 603-490-5344.

 

Comment balloon 30 commentsJoy Baker • June 13 2015 09:13AM

Comments

Joy Baker Love your injected humor in your blog post. I think all us dinosaur RE agents have seen it all, and more. Thanks for reminding me of the past!

Posted by Sandy Padula and Norm Padula, JD, GRI, Presence, Persistence & Perseverance (Realty National) over 3 years ago

Joy I know you're not making this stuff up!  We've been dealing with multiple offers for quite some time and it never ceases to amaze me how most of your top 5 points show up - far too often I might add. Buyers and their agents will figure it out but only after loosing a bid or more.  I always say - you've got one shot at this so play your best cards or don't play at all.

Posted by Anna Banana Kruchten CRB, CRS 602-380-4886, Arizona's Top Banana! (Phoenix Property Shoppe) over 3 years ago

Thanks Sandy and Norm.  You've gotta' keep laughing!

 

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

That's exactly it, Anna.  In these situations, you have to come out of the gate with your best offer because there is a very good possibility you won't get a second chance.

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

Yep. I've had 4 of your 5 scenarios come up regularly too. (The Aunt Sally scenario got me shaking my head. I have yet to experience that one). It's interesting to note that there's always a clear winner out of the gate in a multiple offer situation. It shouldn't be, but it is. 

 

Posted by Denise Hamlin, Broker/Owner, Helping Happy Clients Make Smart Choices (Cardinal Realty ~ 319-400-0268) over 3 years ago

This is what happens sometimes. It takes a few offers to sometimes learn the lessons. Think agent need to educate buyers a little more about multiple offers.

Posted by Bill Reddington, Destin Florida Real Estate (Re/max Southern Realty) over 3 years ago

We warn our clients in advance not to start dealing or low balling because they for sure will not get the property. 

Have heart to heart with buyers about how the market is before taking them out.

Posted by Marla Yost, The Marla Yost Team (Marla Yost Team- Keller Williams Realty) over 3 years ago

I can feel the frustration in this post.  Been there, done that...way too many times with buyers who haven't a clue and don't want to listen to reason.

Posted by Chris Ann Cleland, Associate Broker, Bristow, VA (Long and Foster REALTORS®, Gainesville, VA) over 3 years ago

Pretty funny, but true! It never ceases to amaze me what people will do. 

Posted by Jill Moog, Carlsbad, CA Homes for Sale (Coast & Country Homes and Estates, Inc.) over 3 years ago

In a multiple offer situation, it is always best to present the very best offer you can!

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) over 3 years ago

This entire post is so on point. 

Posted by Chris Lima, Local or Global-Allow me to open doors for you. (Atlantic Shores Realty Expertise) over 3 years ago

Believe it or not, Denise Hamlin, the Aunt Sally scenario has come up more than once.

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

You're right, Bill.  I've also seen more than a few instances where I think the Agent needs more education.

 

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

I think some of this speaks to the relationship between the agent and their buyer client and whether the buyer client believes the agent, Marla.

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

That's the other thing, Chris.  There are buyers who just don't want to listen.  Some of them come to grips with reality and start heeding the advice of their agent after a few failures and some just don't.  When I'm working on the buyer's side, I will only continue to try to help that type of buyer for so long and then I cut ties.

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

Thanks, Jill.  You've gotta' keep laughing!

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

Good Morning, Myrl!  You are absolutely correct!

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

Thanks, Chris!

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

Amazing that these things happen at all. What are they thinking? Oh, maybe they aren't thinking at all!

When we decided to make an offer on our current home, we were told there was another offer already in. We took no chances. We offered a little over asking (just $1000 over, but we rounded up) and we were very lucky to be in a position where we didn't have to make our offer contingent on selling our home first. It sucked to carry two mortgages for a couple months (thank God our home sold shortly after we bought) but we may not have gotten the new home had we made our offer contingent.

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) over 3 years ago

Very nicely done and presented...saying quite a bit about you..all good. If someone wants to purchase successfully, then act like it and results follow

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) over 3 years ago

It still amazes me what people do when they are given solid market data regarding a market.  Many just believe that they know more than most real estate agents.

Posted by Paula McDonald, Magnolia Realty ~ Granbury, TX 936-203-0279 (Magnolia Realty ~ Granbury) over 3 years ago

You were clearly in tune enough, and intelligent enough, to take market conditions into account and made your offer accordingly, Sharon.  I'm happy to hear that it all worked out so well for you!

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

Thank you for the kind words, Richie!  They mean a lot coming from you!

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

I think that is part of the problem, Paula.  Many people just don't have a high opinion of real estate agents and therefore don't believe what they tell them.

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

You are right - you could not make that stuff up. So glad to see this is Featured. 

Posted by Kathleen Daniels, San Jose Homes for Sale-Probate & Trust Specialist (KD Realty - 408.972.1822) over 3 years ago

Thanks, Kathleen.  It's as you say, "Crap-Tacular".  That makes me laugh everytime I say it...LOL

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

Are you serious??? They must have been new licensed agents...or the buyers weren't serious about purchasing and were just hoping for the best deal. 

I would like to add one to your list...Buyers who have all cash and figure they can low ball the sellers. 

 

Posted by Les & Sarah Oswald, Broker, Realtor and Investor (Realty One Group) over 3 years ago

Good idea to highlight that it is not always price that makes an offer better or worse! 

Posted by Cheryl Ritchie, Southern Maryland 301-980-7566 (RE/MAX Leading Edge www.GoldenResults.com) over 3 years ago

Oh yeah, gotta' love the "Cash is King" mentality, Sarah& Les!

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

So many people don't realize there is more to an offer than price, Cheryl!

Posted by Joy Baker, So NH RE & Short Sale Specialist (RE/MAX Insight) over 3 years ago

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