15 Strategies to getting your offer accepted!
The plight of today's buyers: "I'm just so tired of
submitting offers that never get 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.
- 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 out of his or her way to hand deliver an offer. Make sure your agents are going 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. Maybe the seller needs to find another property. Maybe the sellers need to close immediately and are less concerned with proceeds. Maybe the seller would like to do a three week rent-back after close of escrow to help accommodate the move? Learn your sellers' motivating factors and you've won half of the battle.
- 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. Pre-Approval, FICO scores, etc. Your job is to give the sellers peace of mind that the transaction will close if they go with your offer.
- Offer the right price and back it up with Market Data. Sadly, many agents just don't have their head int he game. Agent Bill is selling his Aunts house. He's new. Give him the market data necessary for him to go to the seller and show why your offer is the best offer. "Look Aunt Mary! See the market data? This is a great offer. I think you should accept it." Done.
- 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 instead of 10 or 20%? Make each element of your offer the strongest it can be.
- 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. With lender laws and stipulations over disclosures getting more complicated
by the week, securing an effective lender who's capable of performing on time
is crucial.
- 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.
- Offer a rent-back if needed. Sometimes people need time for their new escrow to close. Sometimes their new home isn't done being built. Communicate your willingness to be flexible if you're comfortable with it.
- If you don't NEED a seller's credit toward closing costs, don't ask. Buyers' Agents often ask for closing costs credits as strategy to help their buyers get into a home. However, as a listing agent, why am I going to accept an offer requiring my sellers to hand over a portion of their proceeds if I have another offer that doesn't? "But can't we raise the offer price to cover the additional credit?" Yes. But if you don't need to...don't. Raising the offer price might push the contract price above the appraised value of the home, leading us all back to the negotiating table.
- Submit an "As-Is" addendum. If you're willing to buy a property truly as is, let the sellers' know up front. Add to your offer the fact that you're actually simply going to buy the home in its current condition, regardless of what turns up on inspection.
- Offer to 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.
- Submit a back-up offer. 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." A simple call from one agent to another might plant a seed that turns into a smoothly closed escrow just weeks later. Remember, if you don't ask...the answer is no.
- 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
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Until next time.
Andy Blasquez Cell ~
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