Here’s a recap of tips 1 through 5:
- Understand That You May Not Know There Are Multiple Offers Up Front
- Counter offers don’t have to be in writing and a verbal agreement is not a contract.
- Home Sellers Don’t Have to Consider Offers from Buyers in the Order They Were Received
- The house is still on the market for sale while you’re negotiating your offer
- Home Sellers Have the Option of Disclosing Contract Terms to Other Buyers
Today’s Tip #6 – Home Sellers are not obligated to accept the highest offer
Price is certainly an important factor, but, there are many other contract terms that could be equally important to the seller, including the closing date and knowing you are a serious qualified home buyer that will make it to the finish line, a.k.a. the closing.
Remember the listing agent and seller both want a closing not a higher offer that falls apart later.
As you compete, remember the highest offer could have contingencies or requests of the seller that would not be attractive. Now is the time for you to make your offer shine by paying cash with proof of funds or having a pre-approval letter instead of a pre-qualification letter to prove you are well-qualified.
Never enter a competition without proof of your qualification to buy. That pre-approval letter also needs to be from a well-known local lender that the Seller Agent knows and is comfortable in their abilities to fund your mortgage.
Another wise strategy for capturing the seller and listing agents attention is to increase your due diligence fee, shorten your due diligence time period and increase the earnest money deposit to show you’re fully committed to the purchase.
Do not ask for extra closing cost, personal property or a home warranty unless the seller had already agreed to those items. Keep your offer very clean, look serious on paper with deposits and remember the listing agent has a lot of influence over which offer the seller ultimately accepts. So be nice and make sure your Exclusive Buyer Agent stays in good rapport with the seller’s agent.
The goal is to make your offer easy for the seller to sign. Don’t clutter it up by asking the seller to fill nail holes, clean carpets or anything else that would cause the seller to have extra work on him when he is busy packing and moving. I have seen things as small as a nail hole tip the scale toward the other buyer.
Lastly, pull on the emotion heart strings of the seller by writing a letter complimenting them on their beautiful home and letting them know how much it means to you.
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Until next time,