How to beat an offer higher than yours

Today I want to talk about a very specific story about how I was able to beat an offer with a higher price than we had, despite there being multiple other offers.

Let’s take a quick step back. We know that right now this is one of the wildest real estate markets in a long time. Historically low interest rates, very little supply, and sky high demand have pushed this to be a very strong seller’s market.

However, that demand is real and it isn't going away any time soon. Despite high prices, buyers are continuing to go after what is available. In fact, at this point in time, I’m working with more buyers than I ever have in my entire career. It’s incredible, but it also is difficult.

Multiple offers means every little aspect of what you do as a buyer counts. Luckily, I have a three pronged strategy that I’ve been using with incredible success: The Right Agent, the Right Buyer, the Right offer.

First off you absolutely have to have the right agent. In a multiple offer situation, that listing agent is going to look up your past sales, your reviews, and make sure you don’t have any violations outstanding. They might even call your broker to get references on you as an agent.

When I’m fielding offers for my sellers, I absolutely always do this.

That listing agent is also going to see how fast you respond to calls, texts, and emails. And finally, are you friendly and enjoyable to work with? People want to work with people they like.

The first thing I do is convey that I respond quickly and at, basically, all hours of the day. I once got a client into escrow because I picked up the phone at a bar with my friends at 10:30 PM at night, pre COVID of course. I research that agent and make sure I’m in a position to seem friendly, diligent, hardworking, and someone who will work to make sure the house closes.

The number one fear of sellers once they choose an offer? That they made the wrong choice and went with a buyer that won’t perform or an agent that won’t pick up the phone.

I get all of those things out of the way with every email I craft, starting with the very first one I send that lays out every document in perfect order, identifies everything in the documents as a summary, and offers them as individual documents and a single document for printing and sending ease.

Agents aren’t doing this. I do this.

Then we have you as the buyer. I need to paint you as the Right Buyer for the home. But what does that mean? In my mind, I want the sellers to fall in love with you. I want them to say, I like these people so much, I absolutely NEED to sell my house to them and no one else.

Not only does this help you win against multiple offers, even offers with higher prices than yours, but it also keeps the sellers happy with you if things go wrong during the escrow, you need more time, or you face a tough request for repairs negotiation.

We want them to be over the moon ecstatic with you as buyers. How do we do that? An incredible letter of introduction with very specific points that I hit in every letter we write. I research the sellers, find them on facebook or elsewhere online. See what points we can connect to.

One time I noticed that the sellers had one room in their office with a few signed baseball photos. So of course we played up the fact that my clients were Dodger’s fans. Another time saw an RV in the driveway, so we played up their love of the outdoors. It’s attention to detail that separates you from the pack. And you absolutely must separate from the pack.

Finally, the right offer. I have a very specific list of levers that we can pull, some big, some small, some seemingly insignificant but that can make a huge impact on how the offer is received. My offers are clean and competitive but I discuss with my clients the power of little things we can do with the offer outside of price to make sure we shine.

I can’t give away all my secrets here, but rest assured, when you hear, “We really like how you wrote the offer” over and over, you know you’re doing something right.

Another point that is extremely important and should not be overlooked is your lender. This brings us back to the story I started with as to how we beat another offer that was higher in price than ours. I knew the agent because I network with many agents, so he liked me and trusted me to do a good job even though we hadn’t yet done a transaction together.

But above that my client was using my preferred lender here in Los Angeles who is not only a fighter for the best mortgage deals for my clients, but is also extremely responsive to both me, my clients, and...in this case....other agents.

See here we are, 9 offers. Another offer had written at a higher price than us, but we were the second highest. So the playing field was down to two. The listing agent called the lender for the other offer, standard practice, just to verify their preapproval and financials and it took them one day to get ahold of them. When the listing agent called my lender? He picked up on the first ring, talked through my client’s financials to more than their satisfaction, and sealed the deal for us.

My client gets their dream home at a dream price too, less than the competition.

So there you have it, an overview of how you as a buyer, still in this very competitive market, can beat other offers that are priced even higher than you.

At Stephens Real Estate, we offer a few value adding programs for both buyers and sellers that no one else is offering.

If you’re interested in purchasing your first home, I LOVE working with first time home buyers and taking a deep dive into what you’re looking for and how we can strategize to make that happen in this still very competitive market in Los Angeles.

We can help recommend local lenders that will fit your financing situation, even if you’re freelance. Plus, you get a full marketing plan that paints you as the right buyer for your dream home. And don’t worry about the inspections, we’ve got you covered. They’re free, all of them, no questions asked.

And If you’re looking to sell your home, we offer the ability to REMODEL NOW, and PAY WHEN YOU SELL with Zero fees, no interest, no upfront costs.

Or, if you just want to freshen up a bit, we offer the HANDYMAN SPECIAL where I pay $1,500 towards all the little fixes can yield up to a 10x return.

Plus, we pay for all of the aspects of digital marketing from photography, drone footage, videography, 3D walkthrough and virtual open houses, social media campaign, custom website, targeted emails and more.