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1. If the client can do all cash, I strongly recommend that they make that part of the offer. They can still do financing, but they need to understand that they are on the hook for cash if the financing falls through.
2. Escalation clauses are difficult - no one trusts them.
3. Never had a letter that actually worked. Sellers seem to be focused on the bottom line, but hey, it's worth a shot.
4. Minimal deadlines -- quick inspection, quickest appraisal possible.
5. Flexibility on closing date, free temporary occupancy.
6. Include a stip that after the contract goes binding, the listing agent must submit a copy of competing offers within 48 hours. Keeps everyone honest, but you get some pushback, especially if one of the competing offers becomes a back-up offer.
7. Go over your comps with a fine-tooth comb. All that MO back-and-forth, and the winner may end up getting the home for less, anyway, if the appraisal comes in below sales price. (If a listing agent suspects that might be a problem, it might be time for a special stip that nullifies the ability to go back after an appraisal and ask for a lower price. While that might not fly with many purchases, if it is a highly desirable home, it might be worth a shot.)
Honestly, I almost prefer being the backup on a multiple-offer situation. The first buyer is usually ticked off that they were sucked into a MO situation, and gets demanding after inspection -- the seller is more likely to walk if they have a back-up and the buyer starts making demands.
Funny you say that last part. I just finished representing a buyer in a multiple offer situation. We offered full asking price, inspection contingency, conventional loan, and financing contingency.The seller went with the other offer. I spoke to my client today after giving her the night to cool off/collect her thoughts. I explained to her the benefits of submitting a backup offer and she said "Thanks, but I'll pass. I thought about it and I don't think I want to pay what I offered anyways. Lets keep looking."
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