Buyers today face very low inventory and stiff competition
for the best choices in the market.
While they have the lowest interest rates in history
available to them, to maximize their possibilities, they
need to be absolutely ready to perform at their
best when that desirable home comes up.
WHAT GIVES YOU THE TEETH OF A
Convincing the Seller that you are:
Willing, Ready, and Reasonable
His Best Choice
How do you do this?
How do you do this?
Know What you Want and the current
comps so that you can act. The ultimate selling price is
NOT a formula. It is the valuation of each individual
buyer, and paying an “over” $5000
to get what you want in a limited field may be a wise
investment. In today’s market if you pay 5% over “market”,you
may earn that back in 1 year.
Put Your Best Price Forward.
Negotiating offers are for another time
or place. Personal letters, photos of kids, all good,
but sellers are focused on their dollar sign.
Next to dollars is the Value of clean
and simple. If you are willing to take on termite,
repairs, even a few days to move and cleaning costs, to
time the closing for the seller’s needs, this can be
very valuable to a seller in the right situation.
Be Ready to Prove it and Commit.
Have your Proof of Funds for down
payment and closing costs and Detailed Pre-Approval from
your lender for at least the price of the property….
This is not the place to negotiate, this is America and
money carries authority. Speak up. Have your lender
write YOUR prequalification to sell to the seller, not
his pro forma. It should state that your credit and
income and cash deposits have been verified. If you have
excellent FICO scores, have them included. If your
credit is crystal clear, have that included. If you are
a specially good borrower because you are guaranteed a
big raise shortly or have a lot of cash in the bank,
show that! This is one time it is a good thing to bare
yourself before the wedding.
Use the Contract to Sell Benefits to the
Since the standard contract allows the
buyer a contingency period during which he can walk with
his deposit in hand, waiving inspection contingencies is
not smart. Remind the seller they protect him! You can
write in your offer that you will ask for NO repairs
unless issues exceed $xxx, but still be informed by the
inspection. You can shorten the contingency period, but
don’t waive it unless you are a contractor.
Waiving appraisals will depend on your
motivation and qualifying. If you pay above appraisal,
you will have to put in extra money to make up the value
difference, since lenders only provide a % of the
You may offer to release your deposit
to the seller after contingencies are released, so he
can begin his move.
You can also sweeten the offer by
accepting responsibility for the pennies that make
sellers crazy. Offer to take care of the smoke detectors
and water heater strapping and water conservation
retrofit required here. We are generally talking $250 –
$1000 here, but if it helps you get the house!..??
And offering the seller time to move
after closing can be important to some cases. (Often
lenders have a 30-day or slightly longer move-in
deadline, so check that out.)
And finally, as any listing agent will
tell you, the quality and reputation of the agent who
represents you will have an effect. Given three similar
offers, any listing agent will lean toward the buyer’s
agent they know and trust to carry through. I have
received offers from agents with whom I had no prior
experience, and they very smartly had someone I know
well and admire provide THEM a letter of recommendation.
I knew that agent would be prepared to deal with any
eventualities. Good luck!
*Appraisals are not FACT, they are opinions
by variously qualified professionals.