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 Stuck in a Multiple Offer Situation?

In a seller's market like Austin, you're almost guaranteed to encounter a multiple offer situation during the home buying process. We've lined out some ways that you can be more successful in winning your bid. We break this into two parts; choosing a lender and structuring your offer.

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Handling a Multiple Offer Situation in Austin, Texas

Ryan Rodenbeck

Ryan started in Austin real estate as an investor in 2001. He looked at all investment opportunities — Austin foreclosures, condos, homes for sale...

Ryan started in Austin real estate as an investor in 2001. He looked at all investment opportunities — Austin foreclosures, condos, homes for sale...

Mar 19 4 minutes read

Part One: Choosing a Lender 

Choose the right lender to win the bid on your Austin dream home

It's a seller's market here in Austin. Choosing the right lender is key to winning the bid!

We recommend Max Leaman at The Leaman Team in Austin, Texas.  Not only is he is the number one volume producer in Austin but he has the best reputation for closing deals. We recommend that you interview your lender and here is a list of questions you should ask.  

  1. When you send me a pre-qualification letter, are you confident that you've gone through my finances enough that there won't be anything else need from me other than an update pay-stub or something of that sort?  Meaning, that you won't find any deal killers to my loan unless I go out and buy a new car or something that will upset my debt to income ratio.
  2. Are you confident enough for me to put zero days on the time allowed to obtain financing, that I will be able to get the loan approved?
  3. How fast can you get an appraisal back?


Part Two: Structuring a Bid 

Structuring your bid in a multiple offer situation can be the difference between winning your Austin home and losing it

Here are our tips for structuring a competitive bid!

Here are some terms that we suggest you take into consideration when structuring an offer to compete in a multiple offer situation:

  1. Allow the seller (or the seller's agent) to pick the title company.
  2. Come in as strong as possible on price, and then add in $1,100 (see the video for clarification).
  3. When asking the seller to provide a survey and T-47 affidavit, also put that if the bank does not approve that buyer will pay for the new one.  
  4. On the part that says Objections to Title - this is the time allowed for the buyer to object to issues on the title commitment, put that as 3 days.
  5. Seller-paid home warranty - put ZERO in this field.  You can buy your own home warranty.
  6. Close date - close as quickly as possible - 3 weeks is ideal if you're getting a loan.
  7. Seller leaseback - offer a free leaseback.
  8. No closing costs if possible.
  9. Option/inspection fee - 5-7 days.  $500 to $1,000, depending on the price point.
  10. Third party financing addendum - put "zero" days for the amount of time the buyer has to achieve financing approval before the earnest money goes hard.
  11. Bridging the difference between contract price and appraisal price - If you're going over asking price, make sure that you put the amount that you're willing to put up, out of pocket, if the appraisal falls short of what you offered.  

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