Multiple offer situations are intimidating to buyers and dreaded by those who have limited abilities to push beyond their boundaries. So any advantage a gifted agent can give their clients to have their offer stand out is more than important, it is priceless. My view was always to explain tough markets to clients before we ever stepped foot into a property. Managing expectations is crucial to have the process move along expeditiously and without time wasted in prolonged considerations. In other words, the buyer needs to be rady to purchase when they find a home they want.
To that end it is crucial that the buyers be pre-approved by a trusted and well respected local lender. There are no second chances it hot markets and it really makes a difference to get this done early in the game. I never showed homes twice to buyers who were unwillingly to get pre-approved up front. It was simply a waste of time. Similarly cash buyers should prepare by getting themselves ready to secure their funds quickly too. To that end getting a bankers letter or one from a broker where the money is being held is also essential.
The next element is talking to the listing agent early and often. Finding out if there are other offers, what matters most to the sellers, and have there been offers submitted that were rejected and why. The more I know about what the sellers want, the better I can help and direct my clients.
Finally, when you are ready to move, come on strong. Buying is serious stuff, not for the faint of heart and requires a maturity of spirit and action. To that end make your initial downpayment stand out by putting 10% up front, or if doing less put that up front as well. The point is to show the sellers by your actions that you are serious about this purchase and are doing everything you can to show that you know this is business. Most folks put a nominal amount down with their offer. By putting all you can up front, you indicate that you are looking to buy a home and not a sandwich. If the offer doesn't fly, you get your money back, and if it does, you haven't lost anything: you've gained credibility.
So that is my thinking. A letter from the buyers can't hurt but often doesn't really matter unless the parties have met and all other things are pretty close. Usually speaking money talks so let your cash speak for you in a way that matters.
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