Today’s blog contribution was written by Ayn MacDonald, ABR®, SRES®. Ayn is a Real Estate Salesperson in Ottawa.
In a sellers market, working hard for buyer clients have become instrumental in the success of your offer (over the competitors). There are many other ways to ‘super-charge’ your buyers’ offer without increasing the purchase price. I’ve been thinking a lot about how to increase your offer without changing very much and here’s what I’ve come up with.
Now keep in mind every scenario is different. You need to use your own judgment of the situation and whether or not to implement one or all of these suggestions. They are all worth considering, but just like the phrase goes, “you’ve only got one kick at the can”.
Consider the following:
- Take into consideration what the seller WANTS:
- You know the asking price that they want (unless the property has been under-priced to facilitate a higher than ask price multiple offer scenario).
- The stuff the seller will leave with the house. The chattels and the fixtures.
- The stuff the buyers must continue to rent. The hot water tank, alarm, etc.
- The stuff the buyer will fix. This can be done by sharing the ailments from the home inspection.
- The sellers most ideal closing date. Are they looking to limit closing costs or do they need time to pack and move.
- To know the Buyers are serious and will close on a future date.
In that case;
Give them the chattels.
Give them their preferred closing date.
Give them a strong deposit. I recommend half of the total funds they have access to.
Give them a firm offer. A serious buyer will complete the conditions in advance (even if it costs’ them).
- Kill ‘em with kindness:
Although it can sometimes be hard with other personality types, remember that everyone is working towards the same goal. You may play for opposing sides, but you are both moving the parties forward. Being kind to the listing agent will make negotiations MUCH smoother and easier for all parties. It doesn’t take much for a deal to go off the rails, but if you are sincere and professional in your approach you can both walk away knowing you did the best you could.
- Rehearse & prepare your buyers for typical outcomes:
Have a firm GAME PLAN, but ensure the buyers have a strong plan B or C or D. Sometimes it includes moving in with family or moving right after a vacation or buying new appliances, but if you give the sellers what they want, they are more likely to bend on the price. Be prepared for any and all outcomes. Showing them a strong game day plan will allow them to make better, more informed decisions.
- Stay positive but realistic:
Even if you aren’t confident in the offer itself (maybe the buyers have low-balled or are offering other bad terms), always be positive & ready to work. Your buyers have asked for your help, and you should be proud to move forward with their wishes. Staying positive can rub off on the listing. Where there is a will there is a way, so be ready to work to find a suitable solution. A realistic but positive attitude will go a long way when your clients get exhausted with the process or the outcomes.
- Don’t make assumptions – just ask.
Find out as much as you can about the house, the age, the renovations, the condition, what’s included and when the sellers would like to vacate. Knowing this will help your clients make better decisions and will give them a full understanding of the home. Its’ human nature to assume the things we don’t know or understand. When people don’t have the answers, they fill in the blanks. And often when it comes to real estate, the unknowns appear expensive.
This causes people to worry. Worry about the condition, worry about the structure or anything else they worry about. When a simple call to the listing agent, would clarify the missing information and leave no room for assumption. Asking probing questions can confirm or deny something the buyer might have assumed was costly to rectify.
- Show the seller who is bidding:
Most sellers are eager to know who the buyers are, and what their intention is with the property. If your clients are willing to share, have them draft a hand-written note or make a video to include along with the offer. It is at the discretion of the listing agent to allow this, but likely they will share it for curiosity sake. A video or note may include; who the buyers are, what they do for a living; why they want to buy this home, and what they love about the house. They usually talk about their favourite room, the style, the condition, etc. Be sure not to talk about changing anything, this may upset the Sellers and this is not the intention
Each offer, each client, and each scenario is different, so be sure to use your own professional judgment. Sometimes your buyers only have one kick at a can, better make it a good one at least! The fact is you have a buyer who wants to buy, and a seller who wants to sell…somewhere there is middle-ground, your job is to find it and do it with the utmost professionalism. Hopefully, you already use a number of these strategies in your buyer offers. If you have others you would like to share, please take a moment to comment, share or start conversation