Competitive real estate markets can be ideal for sellers, but they can be much more challenging for buyers. Sellers might receive multiple offers for each property, so it can be difficult to make your offer stand out from the rest. If you’re planning on buying a home in a hot market, knowing how to respond can help increase your chances of having an offer selected.

How Sellers Might Respond to Multiple Offers

After receiving multiple offers, sellers may simply select the one with the highest price or fewest contingencies. In this situation, there may not be much other buyers or their real estate agents can do.

However, sellers often tell other hopeful buyers about the competing offers in hopes of driving up the selling price. A bidding war gives you an opportunity to craft a bid that sellers might find more favorable.

How to Make Your Offer More Attractive

Increasing the amount of your offer is one of the best ways to get a seller’s attention. If there’s room in your budget, you may want to offer as much as you can comfortably afford to spend. However, bear in mind that other hopeful buyers are likely taking the same approach.

Fortunately, sellers consider much more than price when evaluating offers. Even if your bid is lower than others, they may choose yours if you offer a cash sale, which is generally faster and has a lower risk of complications. You might also consider increasing your down payment, if possible.

Non-Financial Incentives

Contingencies, which put conditions on the sale, can also affect a seller’s decision. If your previous offer made the sale contingent on selling your own house, dropping this requirement will reduce the uncertainty that can make sellers nervous. Getting pre-approved for a mortgage will also make your offer more attractive, since sellers know you’ve already secured financing.

If you’re buying a home anywhere in the Chattanooga area, trust Kathleen Hill Homes at Real Estate Partners Chattanooga to guide you through the process. Their real estate agents have years of experience and the expertise to help you find your dream home. To speak with an agent about real estate for sale, call their offices at (423) 305-3174 today.