7 Ways to Get More Offers AcceptedMay 19, 2022
Educate your buyers about the facts of life in this current market. To win, you must be competitive. There are buyers out there who are willing to do whatever it takes to win, so if you are in, you have to be all in. You have to be willing to make your best offer first. You have to be ready to go when I say go.
Always call the listing agent before you write, and ask, "What can you tell me that will help my buyers write the best offer for your sellers?" Your relationship with the listing agent can be a deciding factor in your buyer's favor.
The phrase 'cleanliness is next to Godliness' also holds true in multiple offer negotiations. The cleaner the better. The easier you make it for the Seller to understand the terms of your offer and to say 'Yes,' the more likely you are to win. The fewer things you add to the offer, the fewer concessions you ask the seller to accept. Don't leave anything blank, incomplete, unclear, or sloppy.
Cash is (still) king. If your buyer needs the proceeds from the sale of their home in order to buy, make sure they sell first and become a cash buyer. Investigate services that offer bridge financing. They are expensive, but in a multiple offer negotiation, offering cash usually wins out over conventional or government mortgages.
CONTINGENCIES & CLAUSES
If you are going to include contingencies, (such as subject to financing, subject to inspection, subject to buyer selling their home) or clauses, (such as escalation clauses and appraisal gaps) make sure that you use Board or MLS approved language and forms. Inspections and appraisals are the two most frequent reasons buyers back out of deals, and most sellers know this or have been forewarned about this by their listing agent.
COORDINATE & COOPERATE
Coordinate the closing and possession dates so that your buyer is protected and the seller isn't put under pressure. Nobody needs to end up homeless. The more cooperative your buyer can be in possession, the more attractive your offer can be against higher price offers.
One way to avoid offering above the asking price and invoking appraisal issues is to offer to pay the seller's closing costs. This increases the seller's net proceeds without the buyer having to overbid. Consider also paying for a home warranty that covers the seller during the time between acceptance and closing.
According to NAR, listings are receiving an average of 4.8 offers until acceptance in the current market. Regardless of how much longer this multiple offer environment persists, these keys will apply.
In Og Mandino's classic book, The Greatest Salesman In The World, he reminds us, "This too shall pass." Nothing lasts, not the good times and not the bad. The market has always had a tendency to go up and down, and up and down.
Keep your negotiating skills sharp, and you will be ready for whatever the market brings.
The Floyd Wickman Team blog by Mike Pallin
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