Writing a strong offer is essential, especially when competing with multiple offers.
Tired of losing out in multiple offer situations?
Getting outbid, or worse, out negotiated?
You and your home buyers deserve the best strategy possible, especially when in a multiple offer situation. It starts with writing a strong offer.
Although, there’s never a “magic pill”, the strategies we’re about to share with you will have you feeling like you just found one!
Try one or more of these next time you write an offer for one of your buyers:
- Ask the listing agent how they would like the offer written up, then write it up THAT way! There is no more powerful way to get your buyers offer accepted than to have the listing agent on your side.
- Type EVERYTHING! Never handwrite offers.
- Minimize contingencies.
STRONG OFFER x TENACIOUS AGENT = COFFEE
COFFEE is for CLOSERS
- Get a pre-approval letter, subject only to appraisal, and clear title. This is CRUCIAL. No other contingencies should be included.
- Go an extra step and get a pre-approval letter from the lender that the listing agent recommends or uses.
- With buyers permission, include a copy of their credit report (with social security number redacted) or at a bare minimum, include their credit scores.
- Include high earnest money, 5% or better, if possible, and allowed in your state! (Going the extra mile, make the earnest money non-refundable, and equal to the down payment!)
- NO inspection contingencies. Do the inspection pre-offer, and if at all possible, make sure that you and your buyer know what the priority is.
- Always include an escalation clause if you know you will be in a multiple offer situation, or if the buyers want the home bad enough, simply come in at the max they can afford and are willing to pay.
- If you decide not to do the earnest money/down payment together, then provide a proof of funds letter with the offer.
- Have a daily delayed closing penalty; if your buyer causes a delay in closing, write in a penalty ($50-100/day or at least .05% of the homes value) so the listing agents know you’re serious about getting this deal closed quickly.
- Club Wealth Ninja Strategy: (Make sure this is okay with your broker and lender) Have your buyer sign a buyer agency agreement and PAY the buyer agent commission post closing. The seller gets to keep the money they had saved for the whole commission!!
- Short closing time frame! Everyone loves to see a short closing, especially the listing agent. Accommodating the seller’s desires is the easiest way to make a strong offer. Note: Ask if the seller may want to occupy the home post-closing.
- Having your buyer write a letter to the seller is a very popular practice. Keep it to 3-5 lines, make sure they use a blue, broad tipped ink pen, and have them embellish on why the home is a perfect fit and why they love it, and why they are the perfect buyer.
- Include an executive summary to the listing agent with the offer, including price, contingencies, inspection time frame, financing details, downpayment, pre-qual letter, pre-approval, credit scores and other items that make your offer stronger.
Next time you write up an offer on a home for one of your buyers, try one or two new ideas from this list and see what a difference it makes!
To receive your FREE copy of the full strong offer readiness checklist and more sample documents, download the PDF by filling out the form above.
As our way of saying thank you for taking the time to read this blog, we invite you to a FREE 55-minute NO PITCH one-on-one coaching call with a Club Wealth coach! Request Strategy Session!