Depending on market conditions, you’ll likely need to be extremely aggressive with your offers. Agents often think the only way to be the winning offer on a property for a buyer is to be the highest priced. However, there are several contributing factors for being the winning offer outside of price. This doesn’t mean that you might not also have to be the highest price offer, but you also want to ensure you have the greatest amount of leverage possible going into negotiations. Here are some of the contributing factors for helping to ensure that your buyer has the winning offer:
1. FIRST PHONE CALL TO LISTING AGENT
Make sure that this happens immediately after the first showing if your buyer has shown interest in taking the next step. Use this phone call as an opportunity to ask specifically what the seller is looking for in an ideal offer.
2. LENDER LETTER
They key here is to make sure you have a strong letter from your lender stating that your buyer is pre-approved
3. PHONE CALL FROM LENDER TO LISTING AGENT
With a proactive phone call from your buyer’s lender confirming the details in the letter, this is an easy way to set your buyer apart from other interested parties.
4. SECOND PHONE CALL TO LISTING AGENT
Proactively calling the listing agent outlining the details of the offer at this stage can do a great job of establishing professionalism and ease in knowing that you’re going to be good to work with in the future stages of the transaction.
5. COVER LETTER WITH OFFER
Including a cover letter from you to the listing agent upon offer submission outlining the most important pieces of the offer adds a personal touch and professionalism as well as makes it easy for the agent to see the details of the offer without going through the whole document.
6. FOLLOW UP WITH A VIDEO TEXT TO LISTING AGENT
Follow up after you send the offer to the listing agent with a personal video text introducing yourself and your brokerage. The personal touch will help you stand out from the other agents.
7. DATES AND DEADLINES EARLIER IS BETTER
This is extremely critical. Make sure that you are really good with dates and deadlines, proactively addressing things like inspection, appraisal and loan conditions deadlines. The earlier you can make those in the transaction, the more protection perceived for the seller.
8. CLOSING DATE FLEXIBILITY
If you are flexible with closing dates, this may tip the scale in your favor, so consider indicating that to the seller/seller agent.
9. OCCUPANCY DATE FLEXIBILITY
Another way to “sweeten the deal” is to allow the sellers to rent back for 30 to 59 days after close. You might offer that rent back free of charge as part of your offer.
10. EARNEST MONEY DEPOSIT
A larger earnest money deposit may give a seller more confidence about your financial strength and the seriousness of your offer.
11. WAIVE OF APPRAISAL OBJECTION
A waiver that says that even if the home doesn’t appraise, you are agreeing to purchase the property for the purchase price. This can put the sellers’ mind at ease and be an additional reason to accept your buyers’ offer.
12. WAIVE OF INSPECTION OBJECTION
By doing this, you are not eliminating your buyer’s right to conduct an inspection or terminate the contract as a result of poor property condition. However, you are waiving your right to request the sellers to fix anything. This still can be negotiated before the time of closing.
13. AMOUNT OF DOWN PAYMENT
A buyer putting 5% down on the purchase of a home is perceived to be a less qualified buyer then one putting down 20% or 30%. In order to be more competitive, you may want to have your buyer explore different down payment and financing options.
14. LOAN TYPE
Conventional loans are perceived to be more reliable loans than VA, FHA or down payment assistance loan programs. You will want to consider, and then manage the perception of the other parties association with your buyer’s chosen loan type.
As with anything in real estate, there is nothing guaranteed. However, by giving consideration to the above factors, you will certainly position your buyer to be in a good spot as they take the next step in purchasing a home. For questions or additional information, or to join the CHR team, contact us today!