Special offer

20% down payment not good enough?

By
Real Estate Agent with Intero Real Estate Services 01168070

I use to think that a 20% down payment buyer was a for sure thing.  In today's competitive market with 10 sometimes 30 offers on the table, a 20% down payment would be considered just the bare minimum (San Francisco Bay Area).  I've recently had my share of being out bidded in multi-offer situations and was determined to find out how to get my clients offer accepted under those circumstances.  I began my research to find out what kinds of offers were actually being accepted.  I quickly discovered that it's not all about the highest priced offered, but more about the down payment.  Sure the offer price is important, but certainly not the deciding factor.  Because there are many "investors" out there competing with "regular" buyers the "investors" have a lump sum of cash to put down, sometimes even "all cash", so when representing a "regular buyer", if possible, have the buyer put  down the most that the buyer can comfortably put down, shorten contingency times, and of course offer an attractive price.

Accepted offer = happy Buyer, happy Agent, referrals, satisfaction!

Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

True here too.....all cash is beating us all out.

Aug 19, 2009 05:24 AM
Jeff Glick
BCHloans - Dunwoody, GA

the only other thing I have heard from my Realtorpartners is loan product.  I recently had a borrower pre-qualified for a 203k and the seller (the bank) rejected the offer because the product inherently takes longer to put through.  I was told they didn't have another offer on the table, but can't confirm that.

Ps. all cash is a winner - not so much for the mortgage guy.

Aug 19, 2009 05:38 AM
Chris Wechner
CW Health Inc - Waterford, MI

Sophia:  Cash IS king.  (I know that I'm not the first person to tell you this one, though.)

 

I know several investors who will take a lower offer when CASH is involved.  It takes less time, and it is a whole lot less of a hassle.  The biggest one is the difference between the inspections required.  Cash buyers don't always require one (which is crazy).

Jun 11, 2010 03:32 AM