When professional teams play against each other, they never go in blind. Their coaches study the other team, know their strengths and weaknesses and when to play to either. They spend days, weeks, even months analyzing a rival team and make sure they adjust each play depending on the players, environment and even the time of year. In the real estate game you can find a lot of similarities.
SETTING YOU UP FOR SUCCESS
One of the best assets of a real estate agent is understanding versatility. This often comes from experience. Learning different tactics for different market environments can be the difference of an acceptance letter, or another few months of searching.
With low inventory and multiple offers being presented to sellers, communication (the right communication!) is key. We have found these three key factors crucial in having a smooth buying process:
- Have the buyer speak with a trusted lender to be clear about the loan and pre-approval. This way, when the right property comes available, we can act on it quickly.
- Call the sellers agent. This initial conversation is crucial to getting a feel for what’s going on behind the scenes. Other offers and non-advertised information about the property can be very important for the buying decision.
- Never send a blind offer. After the initial conversation, a rapport can be established to make sure everyone is competent and making the most educated decisions possible.
THE PERFECT BUYER:
- wants the house
- well qualified
It’s not hard to distinguish what makes an appealing buyer for a home, but sometimes these two qualities are not enough. An agent is there to build confidence in the client and alleviate any concerns. Once an offer is submitted, the lender will call the seller’s agent to financially establish the buyer even further, answer any questions and concerns that the agent might have and separate this buyer from the other offers on the table.
WRITING THE OFFER:
Having a “clean” and concise offer shows the selling side that we are on top of things, and also protects our client’s interests.
- Asking the agent a few questions like: “What escrow period is best for the seller?” can help us understand more about the seller’s situation. Depending on the answer, if that’s workable with our client, we have found a common interest to appeal to.
- When writing the purchase price – know and study the comps in the area to determine what a strong offer is (purchase price relative to the listing price).
- Coming in too low, in order to negotiate, could lead to a situation where there’s no response OR even if there is a multiple counter offer, they are more likely to accept an offer that was stronger to begin with because it shows the other buyer’s motivation and enthusiasm in their property.
ANATOMY OF A STRONG PURCHASE OFFER:
- Provide a buyer letter to explain the motivation for wanting the home (maybe even a photo!). Appeal to the seller emotionally, let them know the buyer’s story and excitement to move into the home, this could differentiate the offer immensely.
We have been one of several offers and because of the buyer’s letter, we had our offer accepted even when there were other very competitive offers.
- A strong pre-approval letter from the lender and proof of funds is a must. We send the agent a concise paragraph about the offer and the terms and then follow up with a phone call and/or text to create a point of contact. After we know it was received, we can make sure to answer any questions.
- Having the lender also contact the agent helps confirm the clients position to buy. They can also answer any loan related questions.
- Staying in touch – let’s bring it back to communication. Studies show that the average attention span has fallen from 12 seconds to 8 over the last 6 years. This means that if you don’t answer your phone, respond to an email or text quick enough, opportunity could have passed you by. We must be accountable and proactive to keep the momentum going in our favor until ultimately we get the offer accepted!
At the end of the day, we will find a way to separate our clients from others and give the sellers confidence that if they select our offer, they are making a good decision.