“It was good?” my wife asked as she tried to lift my bloated belly off the dining room table. My eyes were clearly bigger than my stomach. I felt like I had gained 10 pounds. He was completely stuffed and ready to take a nap.

“It was very good,” I replied. “You outdid yourself.”

She smiled and began to clear the table. Even though the living room sofa and my favorite blanket were calling my name, I jumped up to help her. After we finally got all the dishes into the kitchen, she filled the sink with water, added some soap, and began washing them. I grabbed a towel and asked, “Can I dry the dishes?”

She fainted. (Okay, not really.)

But you get the point. Some offers are obvious. Others are a bit more difficult to get accepted. What I want to talk about today is how to get sellers to accept your offer when they are expecting multiple Purchase and Sale Agreements (PSAs) on an apartment building.

If you find a property that is not on the market and you are negotiating with the seller, it is not that difficult to accept an offer. That’s because you’re the only game in town and have time to negotiate without the fear of someone else coming to rip the rug out from under you.

But what if you find a property that’s on the market and the value makes sense? Chances are, there will be multiple buyers writing offers on the same property. If you suspect that’s the case, try these helpful tips:

standard shape

If you are buying a large property (or a building from a seller who owns several hundred units), they are likely familiar with the PSA and probably have an attorney who will also consider your offer. Even so, I’ve found that most sellers are more receptive to offers written on standard forms. Agents are especially appreciative because they know what they are saying and will sound much more credible when they present the offer to the seller. The chance of your offer being accepted, rather than another offer from a different buyer, is much higher if you use a standard form for your area.

Price

Don’t get greedy. If the property makes sense and you think there will be multiple buyers, present the seller with an offer equal to or slightly higher than the purchase price. That doesn’t mean you get stupid. For starters, the property must be priced fairly, which is why there are multiple buyers. The nice thing about apartment buildings is that they rarely look exactly as pictured. That means you’ll have items to use in the negotiation later.

deadline

Some sellers will pressure you to close quickly and others need time to find another property to complete a tax-deferred 1031 exchange. If you can, be flexible. Find out what is important to the seller. Even if the seller wants a long closing date, I’ve found that writing an offer with a fast closing timeline is often best, especially if agents are involved. Agents despise extended closing dates and when two offers are similar, they almost always move the previous closing date forward. You can always add a clause that gives the seller the right to extend the closing of the escrow to give you time to find your next property, just be sure to remember the loan process and keep the interest rate in mind. If you play your cards right, this can work in your favor in the negotiation.

Inspection and financing contingency

Most PSAs consist of an inspection period and a funding period. Some brokerage companies will break it up into various other contingencies, such as books and records and title reporting. For the purposes of this article, we will assume that the inspection contingency includes physical inspection and review of books, records, and all other documentation. Depending on your level of experience and the size of the property, the inspection period is typically between 21 and 30 days. Read the agreement. Most say that time begins to tick once the buyer has received all the necessary documentation. For this reason, I usually write a very short inspection contingency because the seller and/or his agent are likely to miss something anyway. Most of the time, I can complete the due diligence in less than 10 days, if absolutely necessary. Make sure you give yourself plenty of time, but be aggressive. Sellers want to know that you are moving forward as soon as possible.

When it comes to financing, I have found that both sellers and agents stumble if I write an offer without a financing contingency. Don’t do this unless you are absolutely and positively sure that you will get the loan and are willing to do anything to get it. Making an offer without a financial contingency tells the seller that they have the means to obtain the loan and ultimately close the transaction, but it is not without risk.

earnest money

Some investors refuse to write an earnest money check made out to the escrow because if things go wrong, the seller may make it difficult to get the money back. I’m in that same group. I generally prefer to write a promissory note, however if I think there will be multiple offers I will write a check instead. I generally instruct escrow not to deposit the earnest money check until I have removed the inspection contingency.

Summary

If you have bought and sold real estate before, provide the seller with a list of the properties you own. Sellers like paperwork that tells them you’re a serious buyer. I will also include a letter of interest from a lender if I think it will help.

Good properties don’t stay on the market for long. That means you have to position your offer to make it seem like a no-brainer. If the vendor is serving a large meal, sometimes it makes sense to offer to do the dishes. Ask lots of questions and be aggressive. Do your best – it’s a small price to pay and the couch will be there when you’re ready for a nap.