Out of the blue, all of our clients and team members suddenly need to re-learn how to Win a Multiple Offer in Seattle in 2024. Why? Those of us with 3% interest rates are not selling our single-family homes. Meanwhile, buyers have adjusted to the higher interest rates and want to buy something that is not a townhouse.
Start Here – Kim’s Video About How to Win a Multiple Offer (and how to avoid one)
What are a seller and their agent looking for in a winning offer? They are looking for the highest-priced offer with the least amount of contingencies on the contract. Contingencies are things like reviewing the title report, appraisal, inspection, etc… Sellers also want an offer that is well-financed. How do you go about achieving a winning offer with the fewest number of contingencies? Below we will give you the truth of what it takes to win a home in Seattle right now.
In this guide we are going to give you the secrets on how to win a home in Seattle in a multiple offer right now:
- Get Educated About the Process
- Make Sure You Are Pre-Approved With an Experienced Lender
- Work With a Real Estate Broker Who Knows How to Win a Multiple Offer
- Understand The Listing Broker and the Competition
- Do a Pre-Inspection and Sewer Scope – Waive the Contingency
- Review the Title Report – Waive the Contingency
- Understand Your Financing Options – Waive the Contingency (if possible)
- Have an Aggressive Escalation Strategy
- Make Sure You Have Additional Money in Case of a Low Appraisal
- Shorten Your Closing Date
- Other Tips and Tricks to Win a Multiple Offer
Let’s dive in.
The Guide to Winning a Multiple Offer in Seattle in 2024
The seller and their broker’s goal is to get the most money for the home!!!! Your goal is to win the house and know as much as you can about the home you are purchasing.
Get Educated About the Process
The biggest risk in a multiple offer is when the buyer does not do their due diligence and buys a home that needs work. A well-informed buyer will make a smart buy. Our process of educating our buyers extends to our approach to how to win a multiple offer. The bottom line is that you as a buyer need to do your due diligence. Do not depend on the seller to inform you about their home. You are buying the home. Not the seller.
First things first: Make sure you do a detailed intake with your Team Diva team member. In the intake process, they will go over many of the details below. They will also help you figure out your best strategy for winning a multiple offer.
Below are links to additional content to help you with the process of winning a multiple offer in 2024.
- Download Our Guide: How to Buy a Home in Seattle
- Read Our Blog: Everything You Need to Know about Buying a Home in Seattle in 2024
- Watch The Video: Tips on How to Buy a Home in 2024
- Read the Blog: Learn About the New Buyer Agency Agreement
- Check Out Our Vintage Blog: How to Win a Multiple Offer in a Hot Market
- Bonus: Our 2022 blog “How to Win a Multiple Offer” has some tips and tricks that might help you.
Make Sure You Are Pre-Approved With an Experienced Lender
Listing brokers will not accept an offer from a buyer who is not fully approved for a home loan. And Listing brokers only want to work with lenders who have experience. It is great that you got pre-approved by some online lenders. Listing agents do not know or care about your online lender.
Below is a ton of detail to make sure you are pre-approved with an experienced lender and prepped to win a multiple offer in Seattle.
- Download our Guide: Home Loan Guide (it is next to the buyer guide)
- Check Out the Blog: Guide on How to Get Pre-Approved for a Home Loan
- Watch Kim’s Video: How to Get Approved for a Home Loan
- Read our Blog: What is the Difference Between Pre-Approved Versus Pre-Qualified for a Home Loan
Work With a Real Estate Broker Who Knows How to Win a Multiple Offer
Experience matters! Right now we are getting a lot of calls from people who bought homes at the height of the market and did not have an experienced agent helping them. The homes they purchased have issues and/or they are having buyers regret. An experienced real estate broker will help you prep for a multiple offer. And they will make sure you do your due diligence before making an offer on the home.
Check out our blog that will help you find an awesome real estate agent in Seattle.
Understand The Listing Broker and the Competition
Did you know that listing brokers and neighborhoods have patterns? Some listing brokers are stellar and will typically get 5-7% over asking for their homes. Aka the Diva Tax! But very few brokers have this talent.
Some listing brokers are mediocre and only average 98% of the purchase price. Watch out for those mediocre brokers in a hot market. Every once in a while a mediocre broker will have a listing in a hot neighborhood. And the multiple offers will be abundant!
Here is what our team does to analyze the listing broker and the competition:
- Our team members find out what the listing broker’s average list-to-sale price is for the last year.
- What is the neighborhood’s average list-to-sale price?
- Is the home underpriced to create a bidding war?
- What is the demand rate for this type of home in this neighborhood?
- Is this home super unique and hard to find?
- What is the best offer our client can put together?
- Are there any inspection issues that would impact the overall value of the home?
Do a Pre-Inspection and Sewer Scope – Waive the Contingency
Sellers love providing an inspection report about their home and HATE allowing buyers do their own inspection. The bottom line is that we live in a buyer-beware state. The buyer has to do their due diligence and cannot rely on what is provided by the seller.
Our biggest advice is to do a home inspection and a sewer scope. Based on what you find in the home inspection you can choose to move forward with the home or not.
Here are a couple of tools to help you understand how to navigate this process:
- Start here – The Comprehensive Guide to Getting a Home Inspection in Seattle >
- Next, watch our video – Everything You Need to Know About Getting a Home Inspection >
- Read this Oldie But Goodie – Prepare Yourself for a Pre-Inspection
Review the Title Report – Waive the Contingency
The Title Report is the least reviewed part of the home-buying process. Every year we get a call from someone (people who did not use Team Diva) who is having an issue that is related to title. Ugh! I have personally been in several sticky situations with buyers where there were known issues with the lot lines or one of the sellers was not on the purchase and sale agreement. The title report reveals so much about the home.
Make sure you review the title report before making an offer. Get your questions answered. The buyer needs to know what they are buying.
Here is another helpful blog about how to review the title report >
Pro-Tip: Chat with your Team Diva team member about how you can review the title report, put one day on the review, but date the signature for the day you reviewed the home. This helps you cure any title issues that might come up during the transaction.
Understand Your Financing Options – Waive the Contingency (if possible)
Work with your lender and your Team Diva team member to figure out your best strategy to make your financing look as good as possible. For some people, you might have extra cash on hand and easily be able to waive your financing. And for others, you might need the seller to pay your closing costs. As a result, you will probably not be a good candidate to make an offer in a bidding war.
Here are some questions to ask your lender to make your financing look the best to win a multiple offer:
- Can I waive my financing?
- How much extra cash can I use in case of a low appraisal?
- Do I have enough cash on hand to waive my appraisal?
Have Additional Money Ready in Case of a Low Appraisal to Win a Multiple Offer in 2024
One of the biggest tricks to win multiple offers is to make sure you can cover all or a portion of the price of a home in case you have a low appraisal. Unfortunately, low appraisals are very common when a market is shifting suddenly.
Show me an example, Diva!
Let’s say you win a home at $950,000. But the lender’s appraisal comes back at $925,000. You as the buyer have to make up the difference between the appraised value and the price you decided to purchase the home. In this scenario, that amount is $25,000. At closing, you will need potentially an additional $25,000. Talk to your lender for more details!
Our guide “Winning against all-cash offers by waiving the financing.” goes into more detail.
Have an Aggressive Escalation Strategy
First off, do not start your escalation amount under the offering price. It just pisses the seller off and they will not take your offer seriously. Second, you need to have your escalation amounts in a range that is compelling to a seller. This is especially important if you are trying to overcome other factors in your offer that might be seen as a detriment to the seller. A detriment includes a low down payment, no money to cover a low appraisal, or a long closing.
Let’s go back into the time machine to early 2022 and here is the advice we had for all you Diva Dwellers.
Our strategy in 2022 to win a multiple offer using the escalation was as follows: We recommend making a minimum escalation amount of $7,500 for anything below $500,000. For anything over $500,000, the buyer needs to do $15,000-23,000 above the next best offer. The difference between you and a cash-heavy buyer has to be compelling.
Shorten Your Closing Date
A shorter closing date means the seller can access their money faster. The best way to do this is to make sure you are working with a lender who can close in 21-25 days. A lot of lenders figured this out back in the 2020/2021 market. But a few online lenders do not really understand the importance of closing fast.
Other Tips and Tricks to Win a Multiple Offer
Here are a few other tips and tricks to help you win a bidding war in 2024.
- A buyer could consider releasing their earnest money.
- Some buyers are offering to release the earnest money to the seller once they are in contract.
- Go all in when making an offer on a home that is super unique or considered a hot home.
Now You Have Everything You Need to Win a Multiple Offer in 2024
We hope these tips and tricks will help you during your home-buying process. As usual, we are here to help with anything you might need. Your best step is to make sure you are working with a Team Diva team member who can help you navigate this process.
Feel free to contact us directly at thediva@teamedivarealestate.com or call/text 206-271-0264.
