Every offer is a multiple offer situation

[Jerry Jones]

I am looking for a house in Austin and every house I find that I like that is priced well ends up being a multiple offer situation. How do I handle such a situation? I usually offer about 5K over asking price. I always keep in mind my end goal with the property and the cash flow etc I need to make out of it. I am getting disheartened because not a single offer has been accepted and they are all over asking price by at least 5K.

What is the best way to handle these situations?

[Xuan "Swan" Redding]

Hi Jerry,

I am a REALTOR in Austin, and I focus mainly on investment properties (SFH <$300K for flips and Buy and Hold).

Depending on WHERE you are looking, $5K over asking if not very much. I have had client submit offers for personal homes that were $50K over and still lost, but the areas are very hot (Central, etc).

It also depends on WHAT you want to do with the properties. I have lots of investor clients that are looking to flip or wholesale right now and the low supply + higher pricing makes it very hard to find anything at a price that leaves you room to flip or whole and still have a profit margin. If you're looking for that, then you'll need to direct market to the sellers to find them first.

If you don't want to do that or can't due to cost, then connect with as many wholesalers as you can and they will let you know about deals that they find and can sell you for a fee.

Eric is right, if you're looking to buy and hold, then you have room to pay a little more to just GET the house - but be careful that you are still getting a good deal and not just ANY deal.

My advice to you is to look at market value and determine what your cut off is. Then make that offer. You can always renegotiate after inspections. I submit several offers with my clients and discuss the PROs of our offer with the Sellers and Seller's Agent (quick close, no contingencies, cash, etc). That will give your offer an edge and at the very least make it stand out.

Always - ACT FAST! And make your deal easy to say "Yes" to.

Lastly, let your friends and family, Sphere of Influence, Book of Business and REIA groups know what you're looking for, they might know someone or have a pocket listing coming up - like I do...

:) So, what are you looking for?