How To Get The Winning Bid

Dated: 06/30/2018

Views: 42


This is an article from https://www.forbes.com/ by Tara Mastroeni , that trys to answer the question What makes a winning offer. In today's real estate market in a lot of areas that sell quickly and you need to know how to write offers that get accepted. Let's look at what works and does not work in today's Real Estate Market 

""If it is really a home you like, I would suggest making an offer that's as close to the list price as possible, if not above. Most desirable homes are getting multiple offers within the first week of being on the market, so offers below list price are not even being reviewed. Of course, you should only offer up to where you feel comfortable, but if you want to be competitive against multiple offers, make sure your offer is your highest and best.""

Look at the area and the price, you can get reports from your agent on how fast homes sale in the area you are looking at. For example if you see low days on market then you would want to consider paying market price and make sure your financials where strong for the purchase. 

The way a buyer is financing a home is a large part of a sellers decision making on an offer. For example is it an FHA, VA, Conventional, Cash or Private. The more money down shows the strength on the buyers and that is usually a great sign that they will close the home. You can also have a larger escrow deposit to show how much you want the home. 

" I always encourage buyers to write a letter to the seller introducing them to who they are and why they're interested in the home. I suggest keeping it short and easily digestible – two paragraphs at most. The first paragraph can be about exactly how they felt when they first walked in to the property, and the second is about the buyer themselves, so that the seller can feel a strong emotional connection to them."
I have never done this, but it could be a great way to get a home. In today's real estate market this might be a great way to do it. I did have a seller that wrote a note to my buyers that was very nice. She actually purchased them a gift card at the local nursery so they could get some plants. Nice

" Do whatever you can to eliminate risk from your offer. Often buyers want to add a laundry list of contingencies – like inspections or the sale of their current home – to the offer for their own benefit. However, the seller is trying to reduce all potential for a buyer to back out of an offer and accepting an offer multiple contingencies is a risk. I encourage my clients to do some homework and really prioritize their contingencies to include only the essentials."
Contingencies are a risk, but inspections and appraisals are usually ok with sellers. Selling a home to purchase, long closing, items a buyer adds to the contract is always going to be a red flag.  I had a home for sale and the buyer needed 6 months to qualify for the home. That is usually a big no! This buyer added $70,000 to escrow and made it non-refundable. That is a strong offer and the buyer will close the deal or lose $70,000. There are ways to make strong offers when you need to add contingencies. 

" "Agreeing to buy the home "as is" essentially means that you are agreeing to purchase the home in its current condition and releasing the sellers from the responsibility of making any repairs. In this case, any inspections the buyer elects will be for informational purposes only, meaning that any repairs will be the buyer’s responsibility. This move is attractive from the sellers' point of view because it increases their net profit.""
You can still inspect the property, you just are not asking the seller to repair anything. These offers are usually on homes that need work and your not paying market price for them. If you have a team that knows the cost of repairing something then you can get the approximate cost of any repairs. 

We do as is deals all the time and have a detailed quote for our client to repair the items needed. This allows them to have more homes that they can purchase. 

I hope this helped you in writing a winning offer. If you need an agent that has all the services you will need to buy any home I'm Brett call 216-703-5740 EXP Realty Ohio and 602-363-6551 EXP Realty Arizona. We can also go get some coffee and discuss your real estate needs  

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Brett Young

With over 17 years in the real estate industry, Brett’s primary focus has been on the improvement of housing in neighborhoods . He cooperates well with other brokers and agents that have clients in ....

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