to pay over market (maybe just a little for a home you
love!), so you or your agent must be well versed.
If you’ve really done your homework you realize the
property you have purchased is a steal, then you might
consider loosening up or dropping some contingencies.
Contingencies are the items in place to protect the buyer.
For instance you have an appraisal contingency, where
you get to appraise the home’s value and if you are not
satisfied you can cancel the deal. Doing your homework
means you know the home’s value and are ready to put
your money where your offer is. Other contingencies are
loan contingencies. If you have already been pre-approved unconditionally, dropping this contingency shows
the seller you are serious and ready to close escrow.
Some buyers ask for the world including new build outs,
paying 100% closing costs, home warranties, personal
property, etc. Keeping your offer free of any additional
work or cost to the seller will put you in front of other more
stringent buyers. If it’s simple the seller can simply say yes
or no without all the fuss. The seller is also looking at the
bottom line and every item that is asked for by the buyer
takes away from their ultimate goal, the top price for their
property.
Have your agent or broker do their homework when it
comes to the seller needs. What is truly important to
them? Once you know any “inside” information your
agent or broker is able to find out, you can position your
offer to suit the seller’s needs particularly.
Be sure in all dealings to communicate clearly. Sellers
are nervous too and they want to make sure that all deal
points are clear. Don’t be afraid to send a brief note of
who you are and why you love their home in with the offer.
A personal touch can go a long way.
Don’t forget about counter offers. A good seller’s agent
will advise the seller to counter all offers, even good ones.
If you are prepared for the possibility of a counter offer it
will move the process along much quicker. Counter offers
are not personal attacks, they are simply the seller’s way
of negotiating their best deal.
Check with your banker to find out what $20,000 more
means in monthly mortgage payments. When financing,
you will find that even offering that finally $20k is not as
bad on your monthly mortgage as you might think.
And finally, be on time and respond quickly. Deals are
made and lost in moments. If the seller has multiple offers
and feels like you are faltering, he might accept your competitors offer so he doesn’t “lose all offers”.