Why price isn't the only detail of an attractive offer

By
Real Estate Agent with Northwood Realty Services

I've been working with a particular buyer for well over a year helping to find the "perfect" home for him. I currently have him signed up for my Property Search service so he immediately gets emails as soon as a property hits the market.

We would usually go out every couple of months to see a property or two. He would call or email me and we'd set up an appointment to see them a few days later. But then one day he emailed me right after a new listing was available and he wanted to see it ASAP. This home had all the things he was looking for and I thought we finally found his dream home.

I showed it to him the evening it became available and there were already 6 showings during the day before we got there. This property was hot. It was in a great location, it showed great, and it was priced just right. After the showing I told him this home will be gone within a day or two.

He talked it over with his wife that night and we were ready to put an offer on it the next day. Sure enough, there were two other offers we were competing against. I told my buyer that when you're competing, you're not longer negotiating with the seller. You're now bidding against the other buyers to try to beat them out. Because of that, I told him we not only need to go in with a strong price, but we also need to consider the other sections of a sales agreement that can make an offer strong, particularly the home inspection contingency, closing date, and hand money amount.

We didn't go in at full price, but we did have a short closing date (just over 30 days), a high hand money amount ($10,000), and a home inspection option that allows the seller to take care of any issues that come up on the inspection (Option 2). Option 1 lets the buyer get out of the agreement without giving the seller the option to correct any problems.

What finally happened was that one of the other two offers dropped out so we were now competing against one other person. They had a slightly higher priced offer but because we had the better inspection option and were able to close sooner, our offer ended up looking more attractive and we beat out the other buyer.

So when making an offer where you're competing against another buyer, be sure to have your agent explain ALL of the details of a sales agreement and how certain items other than price may make your offer the most attractive.

For more information about home buying a home, visit www.MikeSellsPittsburgh.com

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