What to do in a Multiple Offer Situation – Chicago

So you’ve found the perfect place but guess what, so did someone else! Multiple offer situations in Chicago are becoming increasingly common. Many properties are selling for above list price. So e question then becomes “What should we do to become the winning bidder?”

Keep your offer clean: Avoid asking for repairs at the beginning, avoid asking for closing costs to be covered, etc. The sellers want a nice clean offer so give them one! Don’t add any additional stipulations outside of the normal contingencies unless they are absolutely necessary.

Price: If you are in a bidding war it is probable that the unit will sell for over the asking price. What you need to do is forget everything you remember bout real estate over he past few years and focus on the present. Look at the property and compare it to other you’ve seen. What is it worth to you? Rely on your Realtor here to make sure you a not grossly over paying for the property but at the end of the day you need to figure out what it is worth to you and stick to that number. Put your absolute best price forward right away.

Shorten contingencies I typically ask for 7 business days or longer for attorney review or home inspection. If you are in a multiple offer situation you can lessen the time it takes for you to complete these items. It will allow the seller to get past all the contingencies quicker which is always a good thing

Closing Date: Dear Mr/Mrs. Seller, What works best for you? Sometimes a quick closing isn’t ideal for the seller of the property as it may not give the sellers enough time to find a place. Therefore I always ask the listing agent what the sellers prefer.

Solid Pre approval:For the love of all that is good use a decent mortgage broker. Don’t use some random person or someone who is a mortgage lender “on the side.” Using a well established mortgage lender can let the sellers rest knowing there will not be unexpected delays with the mortgage.

Earnest Money Put your best foot forward on earnest money if need be. In chicago we typically turn over earnest money in two stages: First, is the initial earnest money that gets turned over with the contract and the Second is turned over after the completion of attorney review. If you are can increase your amounts on earnest money you will again make the seller feel much more comfortable.

Remember price is important but many times it is not the most important thing when negotiating a sale.