The short answer: Winning a multiple-offer situation is rarely about the biggest number alone. The offers that win usually pair a strong, fully reviewed pre-approval with clear terms, a realistic plan for the appraisal, and an inspection approach the seller can trust. In Lakeville and the Twin Cities south metro, a well-priced, move-in ready home can still draw several offers in its first weekend, so the time to build your plan is before you find the house.
Home School Podcast, Episode 1. Liz Sandwick and Tom Sommers of Coldwell Banker Realty break down what it takes to compete, and win, when several buyers want the same home in Lakeville and the Twin Cities.
Losing out on a home you love is hard, and it hurts even more when it happens three or four times in a row. In most cases, the buyer who wins was not simply the one who paid the most. They were the one who was ready.
In Episode 1 of Home School, Tom Sommers and I walked through a multiple-offer situation from every side: the buyer, the seller, and the agents in the middle. Here is the game plan.
Why do homes get multiple offers?
Multiple offers happen when more buyers want a home than there are similar homes to choose from. The usual ingredients are a list price that lines up with recent sales, great condition, strong photos, and a home in a price range where buyers have been waiting for the right fit. When a home like that hits the market on a Thursday, the first weekend of showings can turn into a competition fast.
Citywide numbers can hide this. Lakeville as a whole can look fairly balanced while the most popular price ranges and move-in ready homes stay very competitive.
How can the right lender help you win?
Your lender is part of your offer. A basic pre-qualification tells a seller very little. A pre-approval where the lender has already reviewed your income, assets, and credit tells the seller your financing is real.
- Get your pre-approval done before you tour seriously, not the night you write the offer.
- Choose a lender who answers the phone. Listing agents often call the lender to confirm the buyer is solid.
- Ask your lender for an approval letter matched to each offer price, so you are not showing the seller your maximum.
How does the right team give you an edge?
Strong offers come from a team that is ready before the house is. That means an agent who knows the local listing agents and can ask the right questions, a lender who can respond quickly, and an inspector you can book on short notice. A good agent will also find out what matters most to the seller, like a certain closing date or a little extra time to move, and build that into the offer.
What is an escalation clause?
An escalation clause is an addendum that automatically raises your offer if the seller receives a higher one. It has three parts: your starting price, how much you will beat the competing offer by, and a cap you will not go over.
For example, you offer $450,000 and agree to go $2,000 above any competing offer, up to $475,000. If another buyer offers $460,000, your offer becomes $462,000. The seller will usually ask to see the competing offer as proof.
Escalation clauses can help, but they are not magic. Some sellers do not like them, and your cap still needs to be a number you are truly comfortable with, including what happens if the appraisal comes in lower.
How does appraisal gap coverage work?
If you are financing, your lender will only lend based on the appraised value. When a bidding war pushes the price above what the appraiser can support, there is a gap. Appraisal gap coverage is your promise to pay some or all of that difference in cash.
Say you win at $480,000 and the home appraises at $470,000. With $10,000 of gap coverage, you bring that $10,000 to closing on top of your down payment and closing costs. Sellers love the certainty. The risk is that you need the cash available, and you are paying more than the appraised value, so only commit to an amount you can cover without strain.
What should buyers know about home inspections in a competitive offer?
You do not have to give up your protection to compete, but you may need to adjust it. Common approaches include:
- A standard inspection contingency with a shorter timeline, so the seller knows quickly where things stand.
- An informational inspection, where you keep the right to walk away but agree not to ask for small repairs.
- A pre-offer inspection, when the seller allows it, so you can write a cleaner offer with your eyes open.
Waiving the inspection entirely can make an offer look stronger, but it shifts all of the risk to you. In Minnesota, where issues like radon, aging mechanicals, and ice dams are common, that is a decision to make carefully with your agent.
Negotiation moves that help buyers win without overpaying
- Flexible closing dates or a short rent-back if the seller needs time to move.
- Meaningful earnest money, which shows you are committed.
- Clean, simple terms with short timelines.
- Skipping the personal letter to the seller. Many agents now advise against them because they can raise fair housing concerns, and a clear, strong offer speaks for itself.
Selling in Lakeville? What multiple offers mean for you
If you are the seller, the highest price is only one part of the picture. I help my sellers compare offers side by side on price, financing strength, appraisal coverage, inspection terms, and timing, so they choose the offer most likely to close with the fewest surprises. That is the one that usually nets the most.
Serving Lakeville and the Twin Cities south metro
I help sellers and move-up buyers in Lakeville (55044) and across the south metro, including Apple Valley, Farmington, Burnsville, Rosemount, Prior Lake, Savage, and Eagan. For clients moving out of the area, I connect them with top agents across the country who I trust to take the same level of care.
Frequently asked questions about multiple offers
What is an escalation clause?
An escalation clause is an addendum that automatically raises your offer by a set amount above any competing offer, up to a maximum price you choose. For example, you might offer $450,000 and escalate by $2,000 over any higher offer, up to $475,000. Sellers typically ask to see the competing offer as proof.
How much over asking should I offer in Lakeville?
There is no single right number. It depends on recent sales of similar homes, how many offers the seller has, and how much appraisal risk you can handle. A local agent should review comparable Lakeville sales with you before you decide, so your offer is competitive without overpaying.
What is appraisal gap coverage?
Appraisal gap coverage is a buyer's promise to pay some or all of the difference in cash if the home appraises below the purchase price. If you buy at $480,000 and the home appraises at $470,000, $10,000 of gap coverage means you bring that amount to closing in addition to your down payment and closing costs.
Should I waive the home inspection to win a multiple offer?
Waiving the inspection can make an offer stronger, but it puts all of the risk on the buyer. Many buyers compete successfully with a shorter inspection timeline or an informational inspection instead. Talk with your agent before giving up that protection, especially in Minnesota where radon and aging mechanicals are common.
Does the highest offer always win?
No. Sellers often choose the offer with the best chance of closing smoothly, which can mean strong financing, appraisal coverage, flexible timing, and clean terms. A slightly lower offer with more certainty can beat a higher offer with more risk.
Why does my lender matter in a multiple-offer situation?
Sellers and listing agents want confidence that your financing will close. A full pre-approval from a responsive lender, who can confirm your file quickly when the listing agent calls, can make your offer stand out even when prices are close.
About the hosts
Liz Sandwick, REALTOR®, GRI, e-PRO is a Lakeville-based agent with Coldwell Banker Realty. Licensed since 2011 and living in Lakeville since 2016, she has closed 190+ transactions and focuses on sellers and move-up buyers across Lakeville and the south metro.
Tom Sommers is a REALTOR® with Coldwell Banker Realty serving Lakeville and the surrounding area. You can find every Home School episode on Tom's Home School podcast page and on the Home School YouTube channel.
More from Home School
See every episode on the Home School Podcast page, or subscribe on YouTube.
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Liz Sandwick, REALTOR® | Coldwell Banker Realty | 17305 Cedar Ave, Lakeville, MN 55044 | 952-491-3685 | Liz@CBRealty.com
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