I got the bad news about 25 minutes ago. The seller decided to take the other offer. Ours was good in terms of price but I can see a lot of scenarios where another offer would have had more klout than ours. It inspired me to lay out a few areas that can strengthen an offer. This strategy will work for competing offers but also consider some of these items if you are writing aggressively priced offers.
1.) Price will always be the strongest consideration. We are greed based society so we like to see big numbers and big profit (does that exist anymore?).
2.) Type of loan. USDA and VA loans are excellent loan products but when it comes to competing offers they will be toppled by conventional and possibly FHA loans most of the time. VA specifically seems to have the toughest requirements.
3.) Size of Deposit. It seems to work in the military. He who has the biggest stick seems to be the most powerful. The deposit shows intent to purchase and puts more "skin in the game" for the buyer.
4.) Inspections. I like inspections and the value they provide. If you're competing this could be the difference between winning or losing. Problems cost the seller money.
5.) Dates. How soon can you settle? How soon we will have the deposit? When will you have mortgage commitment? These things matter.
Originally posted @ www.realty-insights.com
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