Be A Better Agent

HOW TO WRITE A WINNING OFFER IN A COMPETITIVE MARKET

Posted on 02/09/2022 by Mike Aden

With only 1,500 homes on the market in the Denver Metro (18,000 homes+ would make a buyer’s market for reference), it’s extremely important that you are going above and beyond for your buyer in order to make sure you’re providing them with an extraordinary experience.

Here is a list of tried and true tips to guide you on how to write a winning offer for your buyer in this competitive market:

SETTING YOURSELF UP FOR SUCCESS

  • Your buyer is: 
    • Pre-Underwritten
    • Buyer Listing Agreement Signed
    • Conversation about current market conditions
    • Proof of funds or verification with lender
  • First to see it and first offer in:
    • Be CC’d on Coming Soon and can book appointments in Coming Soon – have everyone on ASAP (not morning of)
    • Have offer already written with anything the buyer is ready to add so just need to add price – ready to sign it and submit it in the driveway
  • Build a rapport with the listing agent
    • Connect with them as a human
      • Ask if they are doing okay
      • Talk about how the market is and their situation
      • Verify what they (the agent) wants – communication, timeline – plan for receiving and reviewing offers (check MLS Broker Remarks prior)
      • Ask what the seller wants – closing date, PCO
    • Call after showing – Follow up consistently and set the expectation of your communication
      • Let them know you are saving their contact information and will keep great communication going forward. Know you have a lot going on so if I need anything I will be mindful of your time and text you questions or any other additions.
      • Follow up once per day (call, if no answer then text) until under contract
      • Check in on how many offers received, what do we need to do to compete, where do we rank
    • Do your due diligence asking questions
      • Review your offer with them and ask “Is this along the lines of what your clients are looking for?” 
      • Look for personal insights about the seller – veteran, other profession/certificates, jerseys, etc.
  • Second Showing to show you are serious and buyers aren’t reacting

SENDING IN AN OFFER

  • When you send an offer, text the agent a minute video
    • A bit about the buyer, why they love the home, how they are committed, about the lender,  how the deal is structured, about yourself (in the business for a while) and your team
  • Unique Offer Price
    • Do an odd number with an interesting number
  • Include a Cover Letter
    • Outlining what is included in your offer and about you as an agent
  • Unique Subject Line in CTM
    • Bold, all-caps to make it stand out – “This is the one to pick”, “Pick me, pick me”
  • All-in-one CTM email – Docs Management
    • Include Pre-approval
    • Include Picture of the Earnest Money Check – account information covered up
    • Include Credit Report – sensitive info removed
    • Include Proof of Funds – supporting removal of contingencies

OFFER STRATEGIES

  • Cleanest Written Contract
  • Earnest Money
    • Guaranteed Earnest Money
    • Increase Earnest Money Amount
    • Portion of Earnest Money go hard
    • Willing to risk the Earnest Money, could waive the due diligence and property insurance
  • Buyer to pay For:
    • Title Insurance
    • Up to $__ of Seller’s Closing Costs
    • Seller Moving Costs
    • Commission for the Seller
    • Cleaning Services
    • Home Warranty – then remove the inspection resolution
    • Deductible for the roof needing to be repaired
    • Furniture and take the home as is if that is easier for the seller
  • Inspection
    • Have it set up with a tentative date/time
    • Limited/No inspection – termination date only, health and safety
  • Quick Closing (DPA, Condos, Jumbo longer) – know the loan product.
  • Post Closing Occupancy
  • Appraisal Waiver – Gap
  • Remove Contingencies
    • Inspection
    • Appraisal
    • Insurance
  • Escalation Clause
    • Helps the buyer keep the price down but also say they will go up this high
    • If 10 offers or more then you have to do highest and best instead

IF AN OFFER IS NOT ACCEPTED

  • Be Gracious in Defeat – Ask for insights into why the offer was accepted
  • Write a Backup Offer/Contract – Include what you learned about accepted offer
  • Be In It to Win It – Don’t be discouraged. You can outbid others with the relationships with the agents and through your clean contract.

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