Multiple Offer Strategy
RM Home Specialists • March 9, 2024

What Makes a Winning Offer

Chances are you've heard of multiple offers regarding real estate. Especially if you live in Washington State and have had a slight pulse on the market for the past five years. Real estate markets are strongly propelled by supply and demand. Supply is active inventory, aka homes for sale, and the demand is shown by the pending sales- when a buyer and seller get under contract. Overall, there has been a significant shortage of homes compared to people looking to purchase, which has given a strong seller advantage.  This, combined with interest rates in the 2% range, which we saw in 2020, resulted in a frenzy for buyers shopping for homes. With interest rates in the 6-7% range, now fewer people can afford the rates, which has leveled out with the lack of homes for sale.


At the beginning of this year, January 2024, a dip in interest rates impacted the market. We started to see multiple offers again on our listings and when offering with our buyers. Check out this cute Tacoma home that received eight offers or this Lakewood Creekside property with seven offers! With it being so early in the year, before the Spring hits, the homes for sale have not yet caught up with the demand. Due to this resurfacing of multiple offers, we wanted to share some tips and tricks to consider when submitting offers. It's not always the highest purchase price that wins in a seller's eyes.


🗣️Agent to Agent Communication

It's so important to have strong, local representation. Brokers who have a good reputation and rapport with listing agents can call before preparing the offer to see if there's anything specific that the seller is looking for in a winning offer. Specific closing timelines, preferred included items, or a rent-back can tip the scales toward your offer. This effort will establish trust and professionalism on behalf of the buyer.


📣Organized Offer Presentation

Real estate contracts are legally binding documents. There is an order to the forms and the importance of completeness. You’d be surprised by the number of offers received that are not filled out properly on behalf of buyers and presented out of order. This makes it confusing and unclear when reviewing.


📌Additional Tools

Escalation agreements, additional down payment, and waiver of contingencies can all be helpful when competing. These tools can often hold more weight to a seller than a high purchase price. STAY INFORMED. Some of these addendums are put in place to protect buyers, and others come with risks. Make sure you fully understand when it’s appropriate for you to include or waive these forms.


💵Communicative Mortgage Broker

It’s always helpful to include an updated preapproval with your offer. Having your lender reach out to the listing team can go the extra mile. If they can confirm that the buyer has turned in documentation—and, better yet, is through the underwriting process. This information is helpful to the seller, letting them know you are a qualified buyer.


Of course, more should be considered when reviewing offers with your seller. These are just a few key details that make a difference. It takes a team to make it to the closing table, so make sure you’re confident that you're aligned with the right one!


Are you curious about our systems, proven to help buyers negotiate to purchase the home of their dreams? Are you thinking of listing your home and hoping for multiple offers? We've got you. You can use this link to schedule a complimentary consultation.


Regina and Madison
RM Home Specialists
Licensed Managing Brokers | Realtors®
Windermere North Narrows

Tacoma Real Estate | Building Wealth | Luxury Homes | How to Sell a House | How to Buy a House | Windermere | Regina and Madison | Pierce Country Real Estate

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