When a property is listed for sale using the By Negotiation or fixed price method, there is a specific procedure we follow when multiple buyers express interest in making an offer. While it may not be as transparent as an auction, the multi-offer process is designed to ensure fairness for all parties involved.
Each buyer is encouraged to submit their strongest offer. Why is this important? Well, the seller can only accept or negotiate with one offer, so by presenting your best offer, you increase your chances of success!
Here are four tips to make your offer more appealing:
1. Minimize conditions: The fewer conditions you include in your offer, the better. While it’s important to protect yourself, consider actions like sharing the LIM Report with your lawyer in advance (if available) and obtaining pre-approval from the bank for purchasing the specific property. You may even be able to arrange a prompt building inspection.
2. Time matters: If you can’t remove any conditions, review the time period and see if you can reduce the number of working days involved.
3. Craft a cover letter: Include a personal cover letter with your offer to provide the seller with additional information about yourself. Often, sellers care about who they are entrusting their beloved home to, not just the price. This approach proved beneficial when we purchased our own home.
4. Consider multiple offers: Surprisingly, you can make more than one offer. Sometimes, offering less but being in a stronger cash position can be more appealing to the seller than a higher-priced offer with more terms. Present both options and see which one resonates with the seller. This lesser-known strategy is definitely worth considering, as the seller can’t sell their property twice.
For more information on understanding multi-offers, visit https://www.settled.govt.nz/buying-a-home/making-an-offer/understanding-a-multi-offer-process/.