If you want your clients to be competitive in this hot seller’s market, remember these six tips for writing an aggressive yet viable, offer:
1. Earnest money. Your client needs to come in strong with respect to due diligence fees, earnest money, and their timing. How much earnest money is put down shows the seller how much skin buyers are willing to have in the game from the outset.
2. Show the sellers you’re qualified. Remember, there’s a difference between being pre-qualified and pre-approved. You are doing your buyers a disservice if you’re allowing them to look at homes without being fully underwritten. By the time they’re ready to look at homes, their lender should only need to see an address and get an appraisal on the property.
3. Be flexible on the settlement date. Buyers can’t afford to be picky in this market, so be sure to give the seller a closing date that works for them.
4. Remove contingencies and oddities from your buyer’s contract. Since multiple-offer situations are common in this market, you really can’t afford to have contingencies and strange requests in your offer. Make it as clean as possible, and make sure your buyer is ready to potentially pay more for the home than the comparables show it to be worth. Sellers have the power in this market.
5. Make your buyer’s offer personal. Pull out all the stops and have your client write a ‘love letter’ to the seller that details why they fell in love with their home and what their family plans to do with it once they move into it. The buyer can even include a picture of their family to maybe tug on the seller’s heartstrings. To really stand out among the competition, consider making a video instead of a hand-written letter.
6. Write your best offer. If the home is listed at $350,000, the buyer is willing to pay that much, and the market supports that price, don’t let them come in at $330,000 to leave room for negotiating. That strategy will likely leave them without a house. Chances are that other offers will come in higher than yours, and the sellers will toss yours aside in favor of one with a better starting price.
If you’re at the point in your real estate career where you wish you could be part of a team who is rowing in the same direction or you want a better plan for future growth, visit www.HighPerformanceRealEstateCareers.com to schedule a meeting with us to discuss where you are now, where you want to be in the future, and what is holding you back. We hope to hear from you soon!