Hi, it’s John from Downs Capital. You know, people often ask me why some offers get accepted and others don’t. Well, today we’re talking about how to win, how to get ratified and beat out your competition. Look, this is all about how the seller sees things.
Let’s think about the seller. They’re trying to make a decision between who’s going to pay them the most money but also who’s going to be the safest. The money’s easy to figure out. You simply take the highest bidder and you can stack contracts in order from highest to lowest. But what does this seller see as safe? It’s much more complicated. See, the seller’s probably planning on using that money from the sale of their home to buy something else. So if it doesn’t come through, they don’t get to buy their new home.
Here are the top three things to consider when writing your contract. The first is speed to close. Of all the offers that are on the table, who can actually settle faster than the next? Well, if you can close in 15 to 20 days and every other contract needs 45, you can get the seller their money faster and their stress is alleviated.
Number two is contingencies, also known as only if clauses. So you’re telling the seller, I want to buy your house but only if my financing is good or only if the home appraises. If things don’t work out, that contract can be canceled without any risk to the buyer. The most common are home inspections, appraisals and financing. Now sometimes it’s not only the fact that you have them but how long it takes to complete them because a contingency means you, the buyer, have an out.
And number three, the factor that most people might find surprising, is who’s on your team helping you fulfill that contract. While your offer shows your willingness and desire to buy that home, the team you have shows your ability to perform and actually close the deal.
Real estate is a business of relationships. It’s not just me, your loan officer, who needs to have a reputation of closing on time. There’s your lender’s appraiser. Do they know and understand the local market? The real estate agent. Do they have a good reputation among other agents? And a reputation of getting things done? Your team needs to be made up of people who understand all these factors we’ve discussed here, which is why I surround myself and you with people that understand.
Here’s how it typically goes. You’re going to go to an open house and totally fall in love with a home. Then we, your team, get together to develop the whole strategy. We’re all connected and working together, even if you don’t see us all the time. If we’re not working together, well, one weak player can take your contract off track. Only when we’re all working in sync can we make your money the best money on the table. Now, I’m not saying every strong team always wins. But if you want to win, a strong team is as important as any other factor and can be the secret to getting your home.
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