Yesterday I wrote about our market moving into a seller's market. The market data indicates that we are in a seller's market but the activity on my listings tells an even more compelling story.
This photo is me preparing to meet with the seller and present the 12 offers I received last Sunday on my new Klahanie listing.
Here is a list of the top 10 things you can do to give your offer the very best chance of being accepted by the seller.
- Keep your offer clean. What I mean by this is only ask for the things in the transaction that you really want. For example if the appliances are important you ask for them if they aren't don't, especially if they're not offered in the listing. This is pretty much common sense but you'd be surprised how often items come up that are a road block to an offer when the seller is deciding between multiple offers.
- Offer the highest price that you can. What I counsel my clients is to offer a price that they are happy if the seller accepts but terribly not disappointed if they don't. This is a very personal decision as to the value of the property to you. Your broker can assist you by supplying comparable sales data in the areaof the subject property and doing a market analysis for you.
- Keep your contingencies as short as you can. For example if you can get your inspection done in five days don't ask for ten.
- Choose the right Broker. Work with someone who will strongly advocate for you in the bargaining process. Look for someone who will take the time to teach and coach you and not just be an order taker. They should have great communication skills and have the ability to skillfully work with the listing broker, not irritate or attack them yet still strongly be your representative.
- Offer a large earnest money deposit. This is a "no-cost item" to you provided you do not default on the transaction.
- Ask the seller when they would like to close the transaction. If you can accommodate them on this do so.
- If the listing Broker is asking for their favorite title company and escrow company let them choose. Although as a buyer you should have a say in your service providers (RESPA agrees with you choosing as well) this again is an item that will cost you little or no additional money so it's a "freebie" that you can agree to that may help get your offer accepted.
- Provide a strong preapproval letter. Make sure that you are preapproved for your mortgage loan and have your mortgage broker provide a preapproval letter that outlines your ability to obtain financing to purchase the home. If the seller has to decide between an offer with a strong preapproval along with either weak preapproval or none, they will invariably choose the stronger financing.
- Offer a large down payment if you can. Again if the seller has to choose between weaker financing and stronger financing they will accept the stronger financing.
- Write a personal cover letter. A personal letter to the seller outlining why you would like to buy a home may make a difference in choosing between several offers. Make sure that you do not discuss any items that would be a violation of fair housing because if you do so the listing Broker may be compelled to not deliver your letter to the seller. You'd be surprised how often I receive letters outlining marital status, family status, religious preferences, numerous things that I cannot relay to the seller. Your broker can assist you in preparing the letter but what is helpful is to know why you would like to buy the home and that you are committed to the purchase and will work to get the transaction closed as expeditiously as you can.
There are more things that you can do but these are the most important. Tomorrow a discussion concerning ways to find properties in a sellers market to give you more options in choosing a home.
By Brian Leavitt, Designated Broker, Northstone Real Estate Inc
Brian has been a Real Estate Broker for more than 30 years and has
helped hundreds of buyers achieve their dream of how ownership.
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