Most areas are seeing an even more competitive buyers market than ever before. This means not only multiple offers but multiple really great offers, sometimes cash offers, and securing a house for your client can be tougher than ever.
Here are a few areas to focus in on to give your buyers a leg up against the competition:
Price: It’s the obvious one isn’t it – but find out, track and research how high over list price homes are going for in multiple offer situations. Is offering $25k over list price giving your clients a shot – or realistically are homes going for $50k-$75k over list price? Educate yourself and then educate your buyers. If the buyer can’t or won’t take your advise that’s a different story.
Earnest Money: The more earnest money a buyer puts down the stronger and more committed the buyer looks. If you are the seller on a $500k home and Buyer A is offering $5k earnest money and Buyer B is offering $20k earnest money which will you feel is most committed to purchasing the house?
Lender: First off, have a great relationship with a great lender. Second, make sure the listing agent knows it. Have your lender reach out to the listing agent directly to convey and reiterate the buyers strong ability and approval.
Inspections: Is there a standard contingency? Can you shorten it? Do you have a relationship with an inspector who can make inspections happen even on short notice?
Will your buyers take the home without small repairs – could you write into the offer that buyers will not ask for any single repair that is less than $2500? Convey to the seller your buyers are serious and will only be asking for real and big concerns. No one wants to be “nickle and dimed.”
Appraisal: What’s the average turn time on appraisals in your market? Have you asked your lender (see above regarding having an awesome lender) if there is an amount of money that can be paid to put a rush on appraisal and get it back within the week? There may be more options than you think. Furthermore, can your buyer cover a gap in appraisal – write that in!
Closing and Possession: Sellers are concerned about their housing situation too. After all, once sold they have to find a new place to live! Whether it’s renting or buying, some extra possession/rent back could go far in this market. Find out what the seller needs and see if the buyer can accommodate.
Maybe they already moved out – go back to that awesome lender and see how quickly they can close.
Released Earnest Money: What’s a small thank you to a seller for accepting your offer? Maybe $2000 released earnest money upon acceptance? This can make the sellers feel good about choosing your offer and show you’re really committed.
Everything above boils down to 3 things: Good relationships (with the other agent, your lender, inspector, etc), matching up with the sellers needs as closely as your buyers can and ultimately standing out from the rest of the offers. The agent/buyer who wins in these categories wins the house.
Remember, not all buyers are A buyers (motivated and willing to take your advise) the above will only result in a win if you are working with A buyers.
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