Writing a Successful Offer in a Hot Market Real Estate Cycle

By
Real Estate Broker/Owner with Phoenix Property Shoppe AZ Broker BR030809000
https://activerain.com/droplet/5drB

 

 Writing a Successful Offer in a Hot Market Real Estate Cycle

 

Buying a home can be stressful And buying  a home during a hot market cycle can really tie your stomach in knots - but ONLY if you're not prepared properly. It's an agents job to educate their clients on the process of buying a home.  Writing a Successful Offer in a Hot Market Real Estate Cycle is an art that is learned. It is major negotiation skill.  Be sure to ask your agent about what's happening in the market. Knowing the current market statistics and trends is of utmost importance in being able to successfully navigate a bidding 'war'.

 

This past weekend we put 2 hot properties on the market. They were properly prepared for sale, staged, professionally photographed and priced correctly.  All systems were set to say SOLD quickly.  We were swamped with showings all day Saturday and Sunday for both homes. Offers began to come in within hours.   So that was great and not so great....why?

 

 Writing a Successful Offer in a Hot Market Real Estate Cycle

 

Quite a few of the buyers did not have their financing properly in place. Most of the buyers agents had  submitted a 'prequalification' addendum (but some did not). Imagine a seller reviewing offers and some have ZERO  DOCUMENTATION that the buyers are qualified. Why bother writing an offer if you can't prove to the sellers you can actually close on the home? Now who does that make sense too?

 

In Arizona we have a specific form that is required per contract to be attached to an offer.  This form clearly spells out where the buyer is at in the mortgage application process. We can see if the buyer has submitted their qualifying documentation to the lender? And we can also see if it was just a verbal discussion - which isn't given a lot of weight in a hot market (or any market for that matter). Remember - you will be competing with other buyers that are 100% pre-qualified. I can't stress enough that it is absolutely the home buyers job to prove to the sellers, beyond a shadow of doubt, that they are Ready, Willing and ABLE to buy a home and close on it.

 

 Writing a Successful Offer in a Hot Market Real Estate Cycle

 View Phoenix Metro Homes For Sale Here

 

Now I know everybody wants a 'good deal'.  But when you're in a hot real estate market and thinking about trying to get a 'good deal' when a home is only on the market a few days or so THINK AGAIN! If the home is priced right it will sell for very close to list price, at list price, over list price or way over list price. And this is when the Buyers Agent must have a thorough knowledge of current market statistics and trends so they can advise you on how to write a succesful offer. There isn't a lot of negotiating folks, in a hot market. You might be disappointed if you write a low offer and lose out on a home that is perfect for you. But once you figure this out by trial and error, you'll figure it out and make a decision. Do I want a home or not? If so submit a good offer. If not, well that's ok too if it's right for your situation.

 

One more tip for writing a successful bid: Don't ask for items that weren't listed in the MLS Plano, such as refrigerator, washer, dryer, Ramada, grill or whatever other items you think you can negotiate. Just don't do it! The buyers that have the best chance of winning a bid write what I call - a CLEAN OFFER. Buying a home is not like shopping in a store and picking out what you want to buy.  It's just not!  You are trying to buy REAL ESTATE - not stuff. Ok!!!!! Now move forward and buy the home of your dreams! Call us if we can help you buy a home in the Phoenix Metro Market.  We know the market and know how to negotiate successfully.

 

View Phoenix Metro Homes For Sale Here

 

 

 

Writing a Successful Offer in a Hot Market

 

Posted by

 

Phoenix Property Shoppe
  

 

 

Anna "Banana" Kruchten
Designated Broker & Owner
CRB, CRS, GRI, CNE, SFR, CDPE, WLS


Phoenix Homes For Sale

 

Connect with me also on these sites!

 

    Anna Banana Kruchten Google+Anna Kruchten LinkedinAnna Banana Kruchten on GoogleAnna Banana Kruchten of Active Rain

 

 

 

                   Your Referrals & Testimonials Are Greatly Appreciated!

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Thom Abbott 07/24/2018 06:29 PM
Topic:
Home Buying
Location:
Arizona Maricopa County Phoenix
Groups:
The Art Of Marketing You
Bananatude
Bartender, Make it a Double
ActiveRain Contests
Old Farts Club
Tags:
writing a clean real estate offer successfully
the art of negotiation in a hot sellers market

Spam prevention
Show All Comments
Ambassador
3,912,204
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Well done, Anna, and sich good advice. All of this just makes it crystal-clear that working with the right buyer agent to educate, guide, and counsel you effectively is essential in today's market. There are far too many ways that buyers jeopardize any hope of getting their offers accepted or even taken seriously by sellers and listing agents. Buyers need to listen to the people that know what's going on in the market.

Jeff

Jul 24, 2018 04:25 PM #32
Ambassador
2,177,439
Wanda Kubat-Nerdin - Wanda Can!
Prado Real Estate South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Anna, This post can save home buyer's out there in the market looking to purchase a lot of time, if they will listen to their agent. Congrats on the feature, well deserved!

Jul 24, 2018 06:15 PM #33
Rainmaker
1,736,184
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Very little negotiating in a hot sellers' market -- so true. That is only one of the truths you covered in your excellent post.

Jul 24, 2018 06:41 PM #34
Rainmaker
3,172,543
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Anna, I have always been a fan of clean offers no matter if it was a hot market or not, the idea is to have a Win-Win for both sellers and buyers, glad to see you write about this. The word needs to get out, Endre

Jul 24, 2018 10:45 PM #35
Rainmaker
393,650
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Anna, as you so well state, it is about educating the consumer.

In a Hot Market, an offer with the least contingencies and demands will rise to the top.

Thanks for sharing

Jul 25, 2018 04:06 AM #36
Rainmaker
495,818
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

If only buyers would listen to their agents before they start the home search!!  We know what's going on in the local market and how to work it.  Whenever I hear the phrase ' we want a good deal'--I ask for specifics.  A 'good deal' is one where both parties are happy with the outcome!  

Jul 25, 2018 05:52 AM #37
Rainmaker
124,601
Mary Ann Daniell Realtor
Coldwell Banker United, Realtors - Subsidiary of NRT LLC - Killeen, TX
Delivering Successful Results Since 1999

Buyer agents and their clients need to take this information to heart.   Making a clean offer at full price on the property you really want is the quickest way to get it.  Small builders in our market sell at list price.  Agents know that and still submit low offers and are surprised when their clients don't get the home.  Too manyy good offers coming in out there for the builder to counter a bad one!

Jul 25, 2018 06:32 AM #38
Rainmaker
624,123
Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Mach1 Realty Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

Excellent Advice Anna Banana Kruchten CRB, CRS 602-380-4886.

When you "peel" back the layers of an offer...the "fruit" of the package is "bunched" all on one page my Nebraska contracts... the price and cash or loan sections.

Having a full loan approval contingent on appraisal only on Bank letterhead is great. Having a cash offer with Bank letterhead documentation that the funds are really available is also great. 

If a buyer wants to have his/her offer "picked" from the bunch...it cannot have a lot of dirt and bruises on it...then and only then does it have a chance to be the top "Banana"!

Jul 25, 2018 06:36 AM #39
Rainmaker
1,508,239
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

This post should be required reading for all buyers' agents - and all buyers as well!

Just think of all the time and energy they waste writing those "go-nowhere" offers.

Jul 25, 2018 10:08 AM #40
Ambassador
458,943
Terrie Leighton
Ferrari-Lund Real Estate - Reno, NV
Reno Real Estate Agent ~ Selling Homes in Reno

This is post is so "on-point"  for a seller's market. It is hard for some buyers agents to get their buyers to understand the importance of "being ready" to make an offer. It just takes a few rejected offers and then both buyers agent and buyers figure it out. 

Jul 25, 2018 02:53 PM #41
Rainmaker
1,523,560
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

You are right on target Anna.  The stress is high and buyers need to bring their best offer the first time or they may not get the house.

Jul 25, 2018 08:58 PM #42
Rainmaker
573,642
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

We are in a hot market in central MS also, Anna, and buyers should be mindful to submit their best offer. Ironically, I just posted an article very similar to yours. Great minds think alike! 

Jul 26, 2018 08:30 AM #44
Rainmaker
784,129
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.

Can't emphasize the ready and willing part enough.  When homes only last the weekend, you have to be prepared to make a huge life decision very quickly.  

Jul 26, 2018 11:15 AM #45
Rainmaker
153,340
John Henry
John Henry Masterworks Design International, Inc. - Orlando, FL
Residential Architect, Luxury Custom Home Design

I am keeping this one in my file Anna.  Thanks for the WOW (words of wisdom)

Jul 26, 2018 02:24 PM #46
Rainmaker
477,341
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

While it is definitely the buyer agent's 'job' to educate the buyer, it's not always possible to get thru to them...

A "clean" offer is definitely the best. Working with the listing agent is also a good idea when you want something to happen in your favor.

Thanks for sharing Anna Banana Kruchten CRB, CRS 602-380-4886. Time to confirm my buyers 'get it'!
Bruce

 

Jul 26, 2018 08:34 PM #47
Rainmaker
1,843,644
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Anna Banana Kruchten CRB, CRS 602-380-4886 - good to tell buyers like it is.  They need to understand that they must put their best foot forward.

Jul 28, 2018 01:42 PM #48
Rainmaker
382,172
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Great blog, Anna Banana Kruchten CRB, CRS 602-380-4886 . In a hot market with multiple offers, the buyers must put their best offer forward and you outlined a number of ways to do this. Hope you have a great weekend. 

Jul 28, 2018 05:02 PM #49
Rainer
130,084
Anne Corbin
Long and Foster - Lake Anna - Spotsylvania, VA
Serving Lake Anna & Central Virginia

It amazes me that buyers want to pay less and sellers want more than the value. LOL Everybody craves a deal. I'm not sure how we got to this moment in time unless everyone is still used to the slow market of 7 years ago.

Jul 31, 2018 11:59 AM #50
Rainmaker
3,237,213
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Anna - this is an easy- to-follow guide for buyers who want to be successful purchasers.

Aug 05, 2018 09:01 PM #51
Rainmaker
3,183,949
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Escalation clauses here are the "deal of the day" if you want to be the winning offer.

Sep 28, 2018 05:16 AM #52
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
2,799,909

Anna Banana Kruchten CRB, CRS 602-380-4886

Arizona's Top Banana!
Ask Anna Banana!
*
*
*
*
Spam prevention

Additional Information