How can I get my offer accepted?
15 Strategies to getting your offer accepted!
Are you making the wrong offer? Are you working with an ineffective Realtor? Both? I will stand by these words: "If you're willing to write your very strongest offer (note that I didn't say 'highest' offer) the first time, and your Realtor is ethical, diligent, and thorough, you WILL have an offer accepted." Don't give up.
How to:
- The most outside the box strategy used to be the ONLY strategy. Ask your Realtor to hand deliver your offer! It's really easy to ignore an e-mail, phone call, or text message. It's much harder to ignore a human being; one who's gone above and beyond.
- Do your best to truly understand the seller's motivation. Price isn't always king! Neither is cash; especially in short sale situations where the seller may stand to net zero out of the deal. To the seller, knowing that he/she had some influence over who's ultimately going to live in the property, might be the determining factor.
- Demonstrate to the seller that you are not just willing, but able to close Include bank statements, or Proof of Funds to Close with your offer.
- Offer the right price and back it up with Market Data. With more traditional sales closing, price may not be the most important factor for the sellers. Can you close more quickly? Are you willing to extend escrow in order to accommodate the sellers' circumstance? Will you do a rent-back for your seller?
- Offer your maximum down payment. If you're writing an FHA offer, perhaps you can put 5% down rather than the typical 3.5%. Writing Conventional? Can you put 25 or 30% down?
- Offer to close quickly. Ask you lender if he/she can perform quickly. With all else the same, a buyer will typically accept the offer with the shortest time to close. It shows your commitment and eagerness to perform.
- Limit Contingencies. with this caveat: Protect yourself first, aggressively pursue the property second. A contingency on a contract may make a seller nervous. However, you may be able to shorten your inspection contingency period, from 17 days, to 15...or to 10. If your agent is proactive, he/she may be able to line up inspectors in advance, thus not necessitating the entire 17 day contingency release period.
- Offer a Significant Earnest Money Deposit. This can be up to your entire down-payment. Remember, it's not at risk until you release all contingencies, but it might show the seller a level of commitment that no other prospective buyers are willing to (or even thought to) show.
- Write a personal letter. Seriously! More often than not, there is a human being on the other side of this transaction. Expressing, in writing, why it's important that your offer is accepted may be the deciding factor. This is the "get off the pot" clause. You may be spending a half a million dollars or more on a home. Step up! Put in the 12 minutes it might take to draft this letter, even it you have to do it 3 or 4 times.
- Escrow Period. "We're willing to wait if you accept our offer now!" "We can close our FHA loan in 21 days if that would help!"
- If you don't NEED closing costs covered, don't ask. Previously, agents could ask for closing costs very easily and could even raise the asking price to cover the additional credit. However, as values continue to rise, a home might not appraise if you add your closing cost credit into the price!
- Submit an as-is addendum. If you're willing to buy a property truly as is, let the sellers' know up front.
- Ask if you can submit a back-up. Can't even find an "Active" property that suits your needs? To me, every property is active, even if it's not on the market at all. Ask your Realtor to see if you might be able to submit a back-up offer even if MLS doesn't say you "can."
- Put your money into escrow prior to approval on a short-sale offer. Showing the listing agent that you're willing to put your deposit money into escrow demonstrates yet another level of commitment. Remember: your funds are not at risk until you've removed all contingencies.
- NEVER count out negotiation with a builder.
- Even if you don't "feel" that a new home is right, don't leave yourself in a position where you look back a year later and think, "Wow, we could have lived here!"
- Another caveat: Don't go into the builder's sales office unarmed. Although I work with builders very, very often and have huge respect for virtually all of them, it costs you nothing to have your Realtor register you and to have him or her negotiate on your behalf. Imagine if you could have a "Professional Auto Negotiator" with you when you buy your next car...at no extra charge! That's the circumstance with builders. Those of us who close many deals in new construction understand the process thoroughly; know what to watch out for; know what the builders might think is ridiculous; get the deals done.
- A Realtor's commission from the sale of a new home typically comes from the corporations ad budget, not from the price of the house.
" It doesn't take sharp eyes to see the sun and the moon, nor does it take sharp ears to hear the thunderclap. Wisdom is not obvious. You must see the subtle and notice the hidden to be victorious"
~ Sun Zu
Until next time, and thank you in advance for remembering me when the topic of real estate arises.
Email me at andy.blasquez@gmail.com
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Finally, please comment or ask questions. Other readers may be wondering the same thing. I love the feedback, critical or otherwise, and love the interaction: I love this job.
Click here to reach Macky Hensel.
Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook
Finally, please comment or ask questions. Other readers may be wondering the same thing. I love the feedback, critical or otherwise, and love the interaction: I love this job.
Thank you always for your support.
