It is very discouraging tracking a property for weeks only to not have your offer accepted. There are times when you and the seller are far apart and any offer you submit will be quickly rejected. It is the properties with limited competition where you need to secure the deal. Sometimes the seller will have to choose between multiple offers with similar price points. In those situations it is the little things that can tilt the offer in your favor. The way the contract is worded or the ability to close a week earlier can make all the difference. Don’t miss out on good deals because your offer is not up to par. Here are five tips to help get your offer or counter offer accepted.
- Update Financials. Regardless if you are working with a traditional seller or a bank the first priority with any sale is to actually close. You can have the highest offer but unless you show the ability to close your offer will be quickly dismissed. Prior to making any offer it is essential that you update how you are funding your purchase. If you are planning on paying cash for the property you need an updated proof of funds. At a minimum this should be updated within the last thirty days, with the date as close to your offer as possible. In lieu of generic statements you should have an exact amount with your name and date on it. The more detailed your proof of funds letter is the more serious your offer shows. The same is the case if you are using lender financing. You pre-approval letter needs to have as much information about the loan as possible. You can ask your lender to include the exact credit score, down payment amount and even debt to income ratio. Lender financed deals have been given a black eye so you need to show as much positive information as possible.
- Clean Offers Only. Presentation is very important on properties with high demand. If your offer is sloppy or missing items it will not be accepted. Even if time is of the essence you still need to take your time and make sure everything is in place. One missed initial or signature page is all it takes for your offer to be discarded. It is also important that you and your real estate agent submit everything that is asked for. It doesn’t do you any good to quickly submit your offer without a signed disclosure or proof of funds letter. Your real estate agent should know the correct contract forms and exactly what they seller wants to compare apples to apples. If you can’t get what the seller wants you are much better served waiting a few hours or even a day or two until you have everything in perfect order. You may only get one chance to get your offer noticed. Don’t blow it by hastily submitting sloppy offers.
- Justify Price. With any offer it is important to know who you are working with. Sometimes it is easy to distinguish seller motivation or property demand. When there is increased demand you need ways for your offer to stand out besides price. One of the best ways of doing this is by justifying your offer. Whatever you offer you should always have a reason for your price. The seller may not agree with it but at least you can back it up. It is ok to include comparable listings and sales that are more in line with your price. You can also include pictures of the property as well as a bill for the cost of repairs. Be careful not to go too far over the top. You don’t want to make the property seem too bad but you do need to show some flaws and warts. By providing subtle influences you may be able to get the seller to see the property your way.
- Respond Quickly. In a perfect world every offer you make will be accepted within hours of submission. A more likely scenario is that the seller will present a counter offer. If you really want the property you need to act as quickly as possible. This doesn’t mean you have to change your price but you should act in a timely manner either way. A letter to the seller stating that you feel your price is more than fair considering the condition and the neighborhood is acceptable as long as it is done quickly. All a seller really wants with a counter offer is a response. They are trying to engage in negotiation and want to know where they stand. If you feel your offer is fair and you can close quickly there is no need to change.
- Concessions. That being said there are times when you need to give a little to secure the deal. This doesn’t mean you have to give away the farm but you may need to show a willingness to negotiate. Meeting the seller’s price in the middle, closing quicker or eliminating some concessions may just secure the deal. You always have to be aware of demand balanced with your expectations for the property. If the property can be a home run there is no need to get greedy and risk losing it. Asking for too much or pushing the seller too hard can lead them to look for offers in other directions.
By securing more of the deals you really want you will see a spike in your bottom line. Use these five tips to get more offers accepted.
