Gaining your Best Advantage

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.
Convincing the Seller that you are:
  • Capable
  • Willing, Ready, and Reasonable
  • His Best Choice
  • How do you do this?
How do you do this?
Be Prepared.
  • 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 Seller.
  • 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 appraised value*.
  • 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.