Be Don Kramer
Over the last few weeks, I’ve started brainstorming ideas to support you and your clients. This is the toughest market I’ve ever seen. Buyers are struggling and it’s our job to do everything we can to help them start building wealth in a real way. In fact, with two thirds of the buyers over the next decade will be multi-cultural; many of them might be firsts.. first to go to college, first to buy a home, first to buy an investment. Would you like to be a part of their story? Have I shared with you the story of Don Kramer? The Denver Realtor who changed the trajectory of my life, my business, my kids financial futures? I will never forget him and “thank you” could never be enough. So.. how many people can you be Don Kramer to? I know this has become my personal mission.
If you missed the previous blogs.. How to Buy Before Selling; MORE How to Buy Before Selling; and Stop Checking In (conversation starters)… then head over to the new Rueth Team website and get your ideas flowing this morning.
11 Tips to an Accepted Offer – From Obvious to Strategic
- The Obvious.. Offer Above Asking. I know, this is the tough one, especially for buyers who don’t have a lot of money. But it’s almost required unless that home has been sitting on the market for over a week. Do your borrowers have access to retirement funds, employer gift, family gift? Can we shift their funds to putting less down but more over?
- Appraisal Gaps. Almost a given with offering over asking.. hard not to jump in without both feet. Protect your buyer by adding a provision stating the buyer will pay the difference between the offer price and the higher of the list price or appraised value. This way if the appraised value comes in below list; the buyer and seller can negotiate that.
- Substantial/High Earnest Money Deposit. Have your clients make a portion of their EM non-refundable upon acceptance of the offer and another portion non-refundable and released to the seller upon inspection.
- Add an Escalation Clause. Your buyer agrees to increase their offer in $X increments (make it worth the seller’s interest), up to $Y above your buyer’s initial offer price, subject to verification of other offers. I will admit that this one can get a little messy, but can keep you on top.. unless there are multiple offers with escalation clauses.
- Speedy Closing. Offer an 18 to 21 Day Closing! Our team is back to 18 day loan guarantees (i.e. Clear to Close) and 21 Day Closings. Need 10 days or 18 days.. yep, we can do that too with a buyer who is all in. Condos, Jumbos and Down Payment Assistance need a little more time. Combine a fast closing with any of the above to make your offer even more exciting.
- Faster Closing with a Per Diem for each day closing is delayed. Add a provision that the buyer is to pay $100 per day for each day closing goes beyond the contract settlement date. This is an edge and you will want to make sure your buyer is working with a strong lender like The Rueth Team who does not miss closings!
- Pre-Underwritten Loan Pre-Approval. Fairway will pre-underwrite your buyers who may be in a multiple-offer contest. This assures the Seller and the Listing Agent that this buyer is the most qualified. The Rueth Team works with on average 75 buyers a month… we know a thing or two because we’ve seen a thing or two. Our Pre-Approvals get to the closing table 100% of the time!
- Possession Date Delayed. If a Seller wants/needs to close fast to free up their approval for their next purchase, but doesn’t want to move immediately, extend the possession for 30 to 60 days at no cost to the Seller.
- Remove Contingencies. It adds a little more risk, but would make your offer more like cash.. waiving the loan objection and/or the inspection objection. This is truly all in.
- Buyer Pays for Costs Normally Split With, or Paid by Seller. Instead of or in addition to offering over asking; this strategy reduces the Sellers cost to sell. Offer Buyer to pay all Title and Settlement fees, including the Seller’s Owners Title Insurance Policy. Waive or eliminate Property Tax Prorations. Have the Buyer pay Realtor Commissions. As a stop gap, it would be wise to add an “up-to” clause.. “Buyer to pay up to $X of Seller’s fees.
- Make sure to work with a strong lender who calls and emails the Listing Agent. This is a game changer. Don’t have one yet? I know a gal 😉