Be Aggressive!May 19, 2021
In this VERY HOT Sellers’ Market you may not only need to get a little creative with your buyers, but Be Aggressive. If you and your buyer(s) have been missing out on getting their offers accepted, ask your buyers if they are willing to put themselves out there – way out there – to get an accepted offer.
- There is no time to “think” about offers. If your buyer is still pondering what he should offer before writing an offer, the house is already long gone. Buyers need to present their biggest and best offer right off the start and include a short deadline for the sellers to answer back.
- Advise your Buyer to be strong in that EARLY OFFER with their TOP PRICE AND TERMS and with a short deadline… and stick to it. If we don’t get this accepted by (date) we will make an offer on another home. PERIOD. If the Seller doesn’t play, withdraw your offer and ask THEM to come to YOU if they don’t get a better one. This takes GUTS but can be SUPER EFFECTIVE!
- However, biggest and best may mean offering OVER listing price. This is not the time to try to get a house for a “little less.” There are currently no “bargains” out there.
- Ask any agent who has a listing “Coming Soon” if you could sneak in early. Don’t wait for “Day 1” or “We won’t look at offers until xxx!” It doesn’t hurt to ask!
However, offering a higher than list price offer may not be enough. Here are some other ways you may be able to get your buyers’ offers accepted.
- Have your buyer offer to pay OVER appraisal price when they can’t pay cash. With home prices escalating, appraisals are lagging behind in home prices. So, don’t be surprised if an appraisal comes in lower than offer price. And Sellers know this. Be prepared and offer $X dollars above offer price should the appraisal come in below sales price.
- Waive or Pay for Contingencies. If the buyers are certain you want to buy, pay the Seller $1,000+ NON-REFUNDABLE for the right to do a home inspection! And GIVE the Seller the inspection if they want to cancel. WIN-WIN for the Seller to use to disclose to the next buyer.
- SHOW your buyer’s offer is CLEARLY BETTER! Actually, bullet-point what makes their offer better than all the rest in a cover letter and part of the purchase agreement contract. As you already know, a 4-to-5-page purchase agreement has very small print in legalese, many things may be quickly over-looked or missed entirely.
- Make it easy for the Seller to SEE why your buyers’ offer is better!
- Shorten or waive any contingencies.
- Put in the contract that inspection will be for informational purposes only & NO REPAIRS that are not structural/safety – OR if the buyer can fix anything, waive it.
- Offer that the Buyer will GIFT the inspection to the Seller at no cost regardless of if the contract continues.
- Offer a BIG earnest money deposit if your buyers can afford it.
- Can your buyers go Conventional instead of FHA or VA OR USDA? There are conventional low- down programs but to a Seller/Sellers Agent, the added inspections and costs may make the big difference.
- Don’t ask for closing costs unless your buyers must. In fact, your buyers can offer to pay the SELLERS costs! Will the lender finance them in? If you DO have to, raise the price for even MORE.
- Escalation Clause – if that concerns you, say “with proof of competing offer.”
- Have your buyers purchase their own home warranty.
- Give Seller a “moving allowance” to reduce the costs of them moving.
- Could your buyer submit an offer site unseen? If so, Offer Non-Refundable Option Money – e.: Buy an Acceptance. This piggybacks on a few others, but some offers are including to Sellers “Non-Refundable-Option- Money.” NO…. Not “under the table” but in addition to the offer!
- Basically it’s “Take my offer and if I don’t buy it at the price and terms I am committing to in this offer, you can keep $XX as damages. Even if I cancel you keep that money and you get it right NOW!”
- Take the Home Inspector along with you! Do you know someone who knows about HVAC or structures? Certainly, they will not have time to do an inspection, but their trained eyes may be able to see hidden defects.
- Ask if your buyer would pay for your commission instead of having the seller pay for it. Add it to the purchase price so the buyer is able to add it to the loan amount. That’s less money out of the sellers’ pocket and just adds a few cents to the mortgage monthly payment.
If your buyer can’t get an offer accepted, both of you lose. As great as this market is, you’ll want to take full advantage of it – don’t miss out!
Be Aggressive B.E. A.G.G.R.E.S.S.I.V.E and get those buyers’ offers accepted!