All too often we receive bids on properties that include little more information than the price that the buyer is willing to pay and a day that they would like to settle. This is not a huge problem if, as a buyer, you are paying cash and not interested in having any inspections done. In most cases, however, this is not the case.
As a listing agent, our fiduciary duty to the seller is get their house sold at the highest possible price. So, what matters other than price? Simply put, not all buyers are serious and not all buyers can realistically make it to settlement.
So how can you differentiate yourself from these buyers to let the seller know that you are serious:
- Put all offers in writing such that, if accepted, the seller need only sign to execute the contract.
- Provide ample financial information. Pre-approvals are a must. In addition to that, don’t hesitate to list salary information, real estate owned, credit card bills, etc. If you work with a Realtor®, they can provide you with a Buyer Financial Information worksheet.
- Be specific about your loans. If you are doing an 80/15/5 piggyback from Chase, state that. From the seller’s perspective, a buyer who doesn’t know who they will finance the property is a high risk.
- Earnest money shows, well, how earnest you are. You should put at least 5% in escrow, preferably more.
- Quick closings are always the preference. The seller doesn’t care that your lease isn’t up for four more months. They have the property on the market because they want to sell now.
Lastly, the advice I give all of my clients: decide how high you will go before you start negotiating!
