Special offer

BUYERS MAKE AN OFFER THAT SEALS THE DEAL

By
Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

Someone puts up their home for sale. People take note and the interested buyers come around. One of them will want the home. Its the dream they imagined and just want to own it now. In today's competitive market where some local Real Estate inventory is scarce, bidding kicks in. It is not the bidding we had right before the crash. NO. It is a bid that will close and hits the right price..

Here is where knowing math comes in handy. If you have to bid a few thousand dollars over the asking price (all things considered), then we are talking about a few dollars being added on to your projected payment. Its nothing to even blink at and knowing it in advance could be all the edge you need.

As a Listing agent, I am always looking for performance from my buyers or their agents and proof of that performance. Price then becomes the focus along with any repairs if at all...if someone comes to me and makes an offer that lines up with proof, little or no repairs and a price over my asking, then that looks like a deal to me.

Even if you went over by ten thousand dollars, the increase in the monthly is negligible. Remember, you got the house and that was the game plan. I have used this thinking on every home I ever purchased. Worked every time. My offer was so good that while others were planning their strategy, I was opening escrow and packing...

If you want the home, go get it. Know up front what it takes and a good agent will tell you about the supply and demand dynamics for the area you are in. If there is little or no product and something comes up, move and act like its yours and it will be. Don't be penny wise and pound foolish, do be the early bird that catches the worm and whatever you do.....don't even come close to the old cliche of.....

"He who hesitates is lost"

Comments (44)

Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

You make some interesting points.  Just wondering though, if the house doesn't appraise for $10K over then the lender will not finance that amount and the buyer has to come up out of pocket the $10K.... so that approach may not always work... Am I missing something here?

Oct 29, 2012 07:10 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Joan...No, you are not missing anything but quite the contrary...you are on top of your game...If your scenario takes place, then all will know it and thinking out of the box commences....One thing we know for sure...We have a ready willing able buyer and the problem of the deal lies elsewhere....good point and commenting...thank you Joan

Oct 29, 2012 07:24 AM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Richie~ the rock & the hard place....The one thing I respect is a prudent buyer......I think it's more about the buy verses buying the first home you love, there's always another great home for sale, (but can you buy it prudent???) I have more of a investors outlook....AWESOME POST...You are worthy!

Oct 29, 2012 09:26 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Jon...very good point of view and thank you for having the courage to share it....Informative and on track....best Jon

Oct 29, 2012 09:29 AM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Another great post Richie.  Good buyers are great to work with.  Fake buyers can be a nightmare.

Oct 29, 2012 09:30 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello there Paula...Yes AND Yes to your comments....a hezarty thank you too Paula

 

 

ACTIVERAINERS AND PROFESSIONALS

I respect money like anyone else. However, I have learned to use it without hesitation to achieve a result. After-all, that is its purpose....I had to learn this as Alan (#4 suite above) and others point out it is not a easy demeanor to have but oh so handy to use when mastered and commanded...

 

Oct 29, 2012 09:50 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Your post makes total sense.  To me it's a no brainer - if it makes sense, do what you need to do to get the home you want.  I too look for the best possible buyer/agent that  has a 99.9000% chance of closing. It's pretty easy to tell who's serious and who's not.

Oct 29, 2012 10:03 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Anna...Two PEAS nanas in the same banana POD peel....Yes to your comment. That is our job which is to produce a result. Often I can see quickly and clearly where something is not going and cut it loose....best Ms Kruchten......

Oct 29, 2012 10:09 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Richie:  Fantastic post that in essence is a "Call to Action".  Got to admit, I'm blown away by the tale above relating a Buyer losing out on 20 homes??  Wow ... I think I would have jumped ship long before #20 came along ...

As always, insightful and beautifully written ...

Gene

Oct 29, 2012 12:03 PM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg
Yep I lost out on a place just a few weeks back for not willing to budge on price. It happens it's either emotional or financial figure out which you are it makes it easier
Oct 29, 2012 12:52 PM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I am working with a buyer now who “wants the house” and wrote an offer designed to get it. Nice change of pace from those buyers lookers who want a deal more than want a home.

Oct 29, 2012 02:05 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Richie - Good advice, especially in the current market.  The difference in monthly cost is neglible as long as you're using a loan.

Oct 29, 2012 03:02 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

ACTIVERAIN MENS CLUB

 

Hello Gene...This business of dealing with people where there are high stakes $$$ brings out a lot of human nature. One most know how to get in and get out successfully.....That is the focus. Unfortunately, there is no end to distractions and opinions. Only the disciplined will prevail

David...very refreshing comment and it makes us look at ourselves point blank.  Emotions or financial sums it up quite nicely. thank you

John...that's what I am talking about. A signal is sent and received. The message...I WANT THE HOUSE and the rest is history and a closed escrow. Moving with a purpose produces an energy that works for you and against opposing forces.....

Oct 29, 2012 11:37 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author



ACTIVERAIN SPECIAL PRIVATE BOX

 

Congratulations to Christine of Christine Donovan Costa Mesa CA Homes Broker/Attorney 800-610-7253 DRE01267479 (Donovan Blatt Team - Donovan Group Realty)

Every 37th comment gets their own box and this posts winner is Christine who oversees all Costa Mesa, California Real Estate

Oct 29, 2012 11:40 PM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Richie- Savvy Buyers will take your advice and do as you suggest..then there are those with family members who are realtors in...they chime in and cost buyers a home with their bad, unwanted advice.
I'm working with first time home buyers, showed them a house last night that they LOVED, asking $89,900, told them to offer $100,000 and showed them comps. I also knew there were 3 other offers. What did they do? NOTHING!! House is now Pending!

Oct 30, 2012 01:09 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

ACTIVERAIN MAKING SENSE

 

Hi ya Beth...Wow if there ever was a case in point...this is it! I would have jumped on your advice and my wife and I would be shopping for the new home....Joy would be in the air and of regrets.....There are none! Thank you for this most relevant sharing. Also Beth, do a post on your comment. It may just be of interest to many pros here in the Rain 

Oct 30, 2012 03:36 AM
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

Richie - I agree - only time for serious buyers in this market. I have some solid buyers I am currently working with and we have made offers well over asking . . . and are still looking as we did not get accepted. Being a buyer is a huge challenge right now and buyers pretty much need to plan for very high competition - how much over asking is the question on most good listings. Regards Dave

Oct 30, 2012 06:04 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

David...very true this commenting of yours....Perhaps a come to Jesus talk about:...what will it take to get this home. I once called an agent and said just that..What is the happy figure that guarantees me the deal and he complied. thank you David

Oct 30, 2012 07:02 AM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Richie, it is so true and when a buyer tells me i am so glad i 'did not overpay' by making an offer $2k more i just cringe...they do not understand the scope of that decision...I've decided I need to discuss this early on in the offer process.

Oct 30, 2012 11:31 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

G.G.  That is tragic to hear someone obsess about such a small detail or amount. Who says someone over paid? Value is a living entity and is not fixed when it comes to Real Estate. To me, the name of the game is to get in or out successfully. We all know not to throw money away, but do we know how to make it work harder and smarter? Best to you Ms Gorman and this subject has to be discussed upfront. I agree

Oct 31, 2012 12:07 AM