5 Keys To Getting Your Offer Accepted
- Pearson RE Group
- Aug 29, 2017
- 3 min read
Submitting an offer to purchase can be a frustrating experience, particularly in today’s low rate, low inventory, highly competitive south county coastal real estate market. Buyers and Investors everywhere, are looking to snap up their piece of the south county coast – most at or above current asking price. So, besides price, how do you ensure yours is an offer positioned to WIN?
Ask yourself, “…self…, besides price, what are the main points I’d want addressed if I were in the seller’s position…?” You’ve got to assume every offer in today's market will include a strong offer price, but a high offering price does not a closer make. And closers…well, you know what they say about closers...
Regardless of the market we find ourselves in (Seller’s vs. Buyer’s), it’s prudent to present a purchase offer which conveys to the Seller the Buyer’s ability to transact. Whether the purchase offer is for a primary residence, or coastal investment property, anyone actively making offers to purchase should consider putting together a "submittal package". This submittal package (i) is presented with each/every offer made, (ii) precedes the actual Purchase Agreement form, and (iii) generally consists of the following:
1. Letter of Approval ...from a Lender specifying the amount of your offer and an eta on closing (ie: within 30 days of offer acceptance). This is very different from a "pre-qualification" letter. An “Approval” letter acts as evidence that a Lender has fully considered your financial picture, and is now ready, willing, and able to close on a purchase once you put a property under contract.
2. Evidence of Funds ...showing the minimum amount required toward (i) the Good Faith Deposit, which should be approximately 2-3% of the purchase price, and (ii) Down Payment and closing costs typical of the type of property being purchased. We recommend not showing too much more “evidence”, as any prudent Seller (or Seller’s agent) is likely ask for as much "skin in the game” as would be reasonably justified, or simply a higher purchase price since you can obviously afford it...
3. Credit Report(s) ...that is current (3-6 months or newer). Self explanitory, this one. Build a case for why the Seller should choose your offer over the next. Now, not everyone has a perfect FICO score! If you don’t feel your credit report will help to build confidence with the Seller, omit this.
4. Personal Letter …from you, the Buyer; an actual person. A short, simple (1/2 page or less) letter, complete with a picture of you, the kids, (include the dog even!) explaining why you love the property, the area, the community, the schools, the opportunity, whatever... Hokey? Unsophisticated? The goal here is to convey to the Seller that they’re dealing with an individual with your own unique story. A story that sees and appreciates their pride of ownership, their dedication to the property, and that you fully intend to carry that torch after you close escrow. Whatever your reason is for considering a purchase of real estate, there’s an opportunity to connect with and find common ground with the Seller. Psssst!!! This works for investment property as well… Sellers of investment real estate are people too. People want to do business with considerate and appreciative people. Consider and appreciate your audience!
5. The right broker ...is essential to helping you negotiate the myriad of deal points associated with any purchase offer. Due-diligence and inspection periods, concessions, closing timeframes, initial deposits – all of these in varying combinations help contribute to developing a successful purchase offer. The right representative should tailor your offer to fit each opportunity. Crafting a successful offer goes way beyond price and closing dates.
Looking for more tips and tricks to keep you ahead of the competition? Call or email us today!
(949) 487-3178
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