In this market many buyers are finding the home they want, only to discover there are already two, three, or sometimes more offers on the table.  So, what can you do?  You love the home, and you want to make an offer that will win?  What can you do to make your offer stand out?

PUT YOUR BEST OFFER ON THE TABLE

This may seem simple.  However, many buyers will make a lower offer than they are willing to pay in hopes of receiving a counter-offer from the seller. This is done with the intention of "meeting in the middle" on the final agreed upon price. When there are multiple offers on the table this will not work.  In this case, most sellers will not counter anyone they will take the best initial offer on the table.  You cannot anticipate a counter-offer.

USE A CONVENTIONAL LOAN

 If you are pre-qualified with a government loan (FHA, USDA, VA) these loans benefit buyers because of lower down payments, and often have the ability to request sellers assistance at closing.  However, sellers tend to be hesitant with them due to a more stringent inspection and appraisal standard than a typical conventional loan.  If you are pre-qualified with one of these loans, you may want to consider asking your lender if you can switch to a conventional loan at 3% or 5% down.  Sellers are often more likely to lean toward the offer that has a conventional loan.

ESCALATION CLAUSE ADDENDUM

There is an addendum that allows you to, in a multiple offer situation, offer to beat any other offer by YYY amount of dollars, up to XXX total amount of dollars.

Example:

Let's assume a home is Priced at $200,000.  With a Escalation Clause Addendum, you could offer $200,000 (full price), and then offer to top any competing offer by $2,000, up to a total sales price of $210,000.

In this case, if another buyer made an offer of $203,000, your offer would increase to $205,000, and so on with your capped amount being $210,000.

There are some potential pitfall, and other tricky details with this, so be sure to have your agent explain it thoroughly.

BE WILLING TO GIVE SELLER WHAT THEY WANT ON THE LITTLE THINGS.

What do I mean here?  It is a good idea to have your agent call the listing agent, and ask a few questions, (sometimes sellers are willing to answer them.)  An example:  Is there a good closing date for the sellers?  If the seller's agent is willing to share that information, and your loan allows you to do it, give them that closing date, even though the closing date is typically the buyer's choice.  Even if it inconveniences you for a few days try to give them the sellers that date.

There are other things you can do to.  Maybe there is something in the house that the sellers reserved to keep with them.  Even if it is something you want, don't ask for it in the inclusions section of the contract. Ex, swing-set in the backyard, refrigerator, or washer and dryer.

INCREASE YOUR EARNEST MONEY DEPOSIT

The earnest money deposit is the money you put down to back your offer at the time your offer is accepted.  As a general rule of the thumb, this is 1% of the sales price.  When their are multiple offers of the table, if several of those offers are the same or close, seller's will look at who is putting down the most Earnest Money Deposit.  In this case it might be a good idea to increase this to 2%, 3%, 4%, or even 5%.  The more money in the earnest money deposit the less likely the buyer is to try to get out of the sale.

ELIMINATE INSPECTIONS

This is not something I recommend! However, if a seller sees that you are going to give up your right to inspection, and accept the house as is they know they don't need to come back to the table and renegotiate repairs after the inspections.  This is very appealing to them.  It is risky, but in the current market it is a risk some buyers are taking and succeeding with.

ELIMINATE SELLER'S ASSISTANCE

Many loan structures allow for a seller to contribute a certain percentage of the sales price to assist the buyer in paying closing cost.  In this market, it is definetly a good idea to not ask for this.  This is true even if your offer is the only offer.  In the hot seller market, sellers will, more than likely, turn this down, knowing that within a few days they will receive another offer where no seller assistance is requested.

ASSUME YOU HAVE TO BEAT A FULL PRICE OFFER

You will not know the terms of the other offers on the table.  Therefore, the best option you have is to make the assumption that one of those offers is full price, and is requesting no seller assistance at closing.  Now, use the other strategies to craft a winning offer that will top it.  Mix and match and be creative.  Sometimes the highest money amount is not necessarily the only thing a seller is looking for.  Ease of the transaction, favorable closing dates, and the ability to avoid repairs can come into play as well.

It can be tough for buyers, but it's not impossible.  There is a way you can put a winning offer on the table if you are willing to be creative with the terms of your offer.