We make our best offer out the gate.
I make sure our offer is supported by comps.
I have won and lost my share of multi offer deals. I can tell you I have won even though my buyer did not offer the highest sales amount, but had better financing than the offer with the higher price.
And of course I have suffered being simply blown out of the water by a buyer with a sales price way above list.
There are too many factors to consider in multi offer situations, to come up with a magic answer for how and why offers get selected.
Some sellers do not want to sale to a big money investor, and prefer a young family to buy their home. Other sellers are looking only at the bottom line.
Let's not forget, some offers get selected because the listing agent wants to work with the selling agent!
Kawain Payne, Realtor
First find a very good mortgage banker, I would highly recommend me â˜º, discuss your loan options, desires, and needs. I ask my clients and prospective clients a series of questions, determine what they are paying now, what they are comfortable making as a payment amount, and what is the maximum amount that my clients and prospective clients can qualify for. Secondly, I communicate this amount to the clients and give the options of house, house, house, house OR home, savings, lifestyle, etc and let them make the decision. A number of mortgage bankers do it this way.
Getting back to your question.... If you are sure this particular house is the house you really want, WITH THE PROFESSIONAL ADVICE OF YOUR REALTOR, determine how much is the absolute highest price you will pay, determine how much you are wanting to pay, and then with your realtor's guidance and assistance, submit your offer. Let the chips fall where they will and buy your house or find the better one that is really the one that you will want because you did not OVER pay or over bid.
I am a Mortgage Banker in metro Phoenix, AZ. I lend in both Arizona and California where I will be pleased to help you. If you or someone you know is looking for financing options, please feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman NMLS # 218520 KLCSLoanTeam.com We are Direct Lenders, WE CLOSE LOANS!
Unfortunately sellers may not like playing the +1,000 game. And most don't trust a buyer that would make a blind bid like that.. I have see Non-refundable earnest money work..
I have seen Love Letters work on occasion.
Most of the time you just need to make sure your agent is presenting the offer in person.
I'd like to add that other things can help because the seller is not obligated to take the highest bidder.
A personal letter to the seller stating why the buyer loves the house has helped clients of mine win without the highest price.
If you are in a situation where you know the house won't appraise, but there's a lot of competition for the house, you can write in the offer that your client will pay a specified amount (say, $1000) above the appraised value, if the house appraises below the sale price. Frankly I'd use both this condition as well as the escalation clause.
Sometimes, you just need to walk away. Who wants to pay $50,000 above market value?
That's dangerous, though. Suppose a house is worth $400,000, based on comps. Someone offers $400,000. Your offer rises to $401,000. Now you're overpaying and the house might not appraise for that amount. (OK, it probably will; that isn't much above the comps.) But someone else really loves the house, has a bunch of cash, and makes an offer at $425,000. Your offer immediately rises to $426,000. Now you're definitely overpaying and run a real risk that the house won't appraise for that amount.
You can always put a cap on that escalation clause. But then someone might bid higher than your cap. And so, with that protection, you can't make sure you come out on top.