You might ask yourself, how do other buyers affect my house buying experience? What role do they play? Can other buyers impact the price that I pay for my house? Those are all great questions. The answer is maybe. Let’s talk about the role other buyers play in YOUR home buying experience.
First of all, chances are that other home buyers have already previously viewed a home that you are considering to purchase. Why would that matter, you ask? Well, typically, when a buyers agent shows a home, they will provide written or verbal feedback to the listing agent. This is a common practice as this is how the seller collects feedback about what buyers like and don’t like about their property. Perhaps the home’s layout is “choppy” or not functional. The home may need a lot of landscaping or need to be painted on the exterior. Whatever the feedback may be, it is shared routinely with the seller. Once a listing agent receives a lot of the same feedback over and over, they will typically try to have the seller address that particular issue. The reason being is that they may feel that feedback is inhibiting the sale of the home. For example, if 5 consecutive buyers say that the carpet needs to be replaced, then the listing agent may persuade the seller to either replace the carpet or offer an allowance for new carpet. So, as you can see, other buyers can actually have already helped you negotiate issues within a home. Consequently, when you go to negotiate, perhaps the seller has already resigned to the fact they must address an issue based on many other comments.
Another way other buyers can impact your experience is through a multiple offer scenario. What is a multiple offer scenario? A multiple offer scenario is when multiple offers come in at the same time on a home and a seller must evaluate the different offers. In these cases, the seller may choose to do one of many things. They may accept the best offer. They may inform all potential buyers that there are multiple offers and ask the buyers to make their final best offer. Sellers may also elect to counter on one of the offers and wait to respond to other offers based on the other counter offer being accepted. They may also decide to counter on one of the offers and go ahead and reject the others. Either way, when there are other buyers putting in a simultaneous offer, the price will likely be bid up due to the competition. Please note, when hiring a buyers agent, it is preferred to work with an agent that has experience in multiple offer situations.
Since there are always other buyers looking at the houses you are considering, you should always make sure your offer is strong. We recommend always presenting your offer with a pre-approval letter. This will show that you are a legitimate buyer and in a multiple offer situation, a seller may take your offer over an offer without a pre-qual letter.