By Barbara Lehrer
Real Talk
Barbara Lehrer
What an exciting market we are in. The residential sales are through the roof.
What does that really mean for sellers and buyers trying to seal a transaction? If you are writing an offer, you should be working on a strategy to stand out. As you compete with others, be consistent with what is reasonable for your pocketbook. Many buyers keep upping their offer even when the home will not appraise at that value. In a case such as this you must be willing to pay the extra cash needed if the property does not meet your numbers. It is hard to know what is reasonable now when the interest rates are so low that it affords you more buying power.
The goal is to get the deal, so how do you really compete? You should have the best scenario you can set up with your lender. Completely apply for a loan before you look for a home. Ask the mortgage company to put in writing that you have done everything but present a contract to them.
Having the right attitude will also help see you through this stressful period. Do not think that the agent representing the seller, or the sellers themselves, are insensitive or greedy. They are usually just as unsure about the process as you are. They need to trust that the complete transaction process you present on a contract is accurate and can be finished on time. It is important to be able to take off from work for your home inspection as soon as possible, lay down a large deposit as it is the earnest money and make tight contingency dates for each step.
If you design your deal as tight as possible, knowing you have done all your homework, then you will feel confident in your offer. Often with multiple offers there is a low down payment up front or a long time ahead for inspections and mortgage approval. Listing agents and their clients scrutinize these particulars; they are important.
As the seller examines each offer, there may be several in front of them, each with different strengths. Of course, the price and the down payment are the numbers, but sellers will look at the scenario of the buyers. Are they closing on another property? How far along is that transaction? Each lender on the preapproval letters will be contacted to assure that the credit history has been pulled and the names and amounts are verified. Sometimes there is not a phone number for the lender on the preapproval; that is not a great sign. How will we contact them if there is a problem down the line? Even the earnest money should be a conversation between the two realtors. When will it transfer? Are the funds currently available?
These are not ordinary times. Inventory is so low that there are short time frames for dozens of realtors to get their buyers appointments on brand new listings. Agents are scrambling to get their clients a home at a reasonable price, or perhaps taking that brand new listing that hits the multiple listing, filtering dozens of showings and offers to help the seller chose the appropriate offer on the table amongst many.
Write a clean offer that is extremely efficient. Everyone then does their due diligence to ethically pick out the right contract for their specific needs. You can only pick one offer, and most buyers today are writing a half a dozen contracts until their own is chosen. We all must do our best.