In this time of increasingly limited inventory, this is a love story Realtors see far too often. It’s heartbreaking for us agents as well. Whether we are representing buyers or sellers, we feel your pain!
I recently had a listing that received many offers above list price, and as I would send the personal letters over to the sellers, they would get emotionally attached to each buyer making their decision even more difficult. At one point the husband said to me, “I wish I had more houses like this one to accept all the offers!”
As a buyer, it may seem like you are helpless if you don’t have enough cash to buy the home outright and you aren’t willing to pay tens of thousands over list price - that’s it, no home for you. BUT I’m here to tell you there are ways to make your offer more appealing.. sometimes even more appealing than a cash offer! Here are some techniques our agents have used or seen
applied on our listings:
- Escalation Clause - This essentially tells the seller, “show me a higher offer you’ve received and I’ll beat it by $XX up to a certain dollar amount.”
- Limited Appraisal Waiver - It’s one thing to have the higher offer, but will the house appraise? With the Limited Appraisal Waiver, we typically use language like, “in the event, the home does not appraise at the purchase price, the buyer will pay an additional $XX amount above appraised value out of pocket.”
- Personal Letters - Selling a home can be just as emotional of a process as buying a home. Sometimes these personal letters can really make a difference when the seller decides what offer to accept!
- Communication from Lender to Listing Agent - Sellers like to know that their buyers are qualified and they like to know that their deal isn’t going to fall through at the last minute. Any communication from the lender to the listing agent helps, whether it’s a simple phone call or an email.
- Higher Down Payment - Can’t afford to pay for the entire home in cash? Maybe put more money down instead. Sellers love to see a buyer that is able to put more money down. This typically means there is less of a chance of the sale falling through after the appraisal.
- Buyer’s Concessions - This creative option needs to be cleared through the lender first, but this allows the BUYER to give the SELLER a credit at close of escrow. This can be beneficial because the seller can net more money without raising the purchase price and jeopardizing the appraised value coming in low.
Long story short - don’t give up on your love story. We as a team have creative solutions to help you get into the home you love. Call us today to learn more!
Source: E & G Real Estate Services In Association With Danny Kahn Real Estate