5 Tips For Getting Your Offer Accepted In a Sellers Market
Are you struggling to get offers accepted in this HOT market? Do you have a desire to hear YES more?! If so then you're not alone and you will want to check out our 5 tips to getting an offer accepted in a sellers market...
What You Should Know First
There are a lot of misconceptions when it comes to what it takes to get offers accepted in a Seller's market. If you ask any real estate professional (agents, other investors) alike, they will all tell you that it's all about the price and terms.
After completing hundreds of real estate transactions in both Buyer and Seller markets over the years, I have learned that there is much more to it than that and have condensed them down to 5 tips that will help you get more offers accepted right now. Ready? Let's dive in...
Find The Best Investment Properties For Sale
The first thing you need to do before being able to even present an offer to a seller is to find the best investment properties for sale. FlipTEAM™ software has a unique way of finding the BEST investment properties in your area that not many people know about, so you should definitely check that out first as it can be your slight edge over the competition. It has even been called a "private deal generator system" by other investors. Truly, it's like nothing you have ever seen before and I'd recommend taking it out for a spin.
Focus On The Seller
Once you have an opportunity, before contacting the owner, you must remember to take the focus off of yourself.
One of the BIGGEST mistakes that buyers make in this market is focusing solely on their offer and what they want. They forget that this is a people business and there is another side to the transaction....the seller.
More buyers would get more offers accepted if they simply just asked the Realtor or seller, what is important to THEM."
IF REALTOR: "Before I put in my offer, is there anything that is important to the seller that I should know about?"
IF SELLER: "Mr/Mrs. Seller, so why are you thinking about selling?"
Both of those questions will give you insight into the "Reason behind the reason" for selling.
People assume too much and they think that the only thing the seller cares about is money or price. What if it's simply just allowing them to keep their furniture in the house, so they don't have to move it - maybe they are downsizing? This is all good information that you'd never know unless you asked and it increases your chances of getting an offer accepted in a Seller's market.
Spicing Up The Offer With Terms
Terms are another way you can "win the offer" in a Seller's market. After you have asked a handful of questions to find out what is important to the seller, you should now have the information you need to start crafting your offer. Exampled of terms could be:
- Leaseback: This is when the seller remains in the property after the buyer closes for an agreed period of time. This is typically popular with the elderly demographic where they will need funds from the sale and additional time to move.
*There should be a clause in all leaseback addendums that states what will happen if the seller has not vacated the property by the agreed-upon time to protect all parties involved.
- As-Is Purchase: This is where the seller can "take what they want and leave the rest". This is popular when sellers are downsizing or want to minimize effort in the move. Remember, moving is inconvenient for everyone, so if you are wanting to create a winning offer, why not make the transition as easy as possible for the Seller?
- Covering Closings Costs: When sellers can walk away with a NET OFFER, meaning the offer you make is the number they will receive at closing (minus pro-rated taxes, liens, or encumbrances) it gives them peace of mind.
With so many cash offers on the market today from retail buyers and investors, waiving contingencies can be a big motivator for a Seller to move forward with your offer, over another. I have even seen situations where lower offers beat out higher offers due to this very thing. Whether you are getting financing or you are using cash Sellers want to know that you are going to close. Here is a list of contingencies that you can waive to make your offer more competitive:
- Inspection Contingency: The inspection is risky to waive, but is not an unusual contingency for most investors. By waiving this, you are telling the seller "I know what I am doing, I am serious and I am going to close". This gives sellers peace of mind.
- Appraisal Contingency: Investor offers are not typically subject to appraisal, but with how quickly numbers are changing in this market month over month, this can be important to the seller. How will you know this? ASK! As a side note, you want to make sure you have run comparable sales, so you can be 100% confident in the offer you make.
- Financing Contingency: Investor offers are not typically subject to financing contingency but if yours is, then you might want to consider waiving it. This again tells the seller, "I'm here, I know what I am doing and am not going anywhere."
Calculating Your Offer Price
In this HOT market that we are finding ourselves in, price does matter, but it's important to understand that it's not the only thing that matters. The offer price should be the very last thing that you put together as a part of your offer. So how do you come up with your offer?
- Ask The Seller: Instead of coming out of the gate with an offer, first ask the seller how much they are hoping to get for their home. This number might vary greatly in your favor.
- Look at comparable sold listings: Either connect with a Realtor to find recently sold comps for the property you are looking at or you can use sites like Zillow, Redfin, or Realtor.com. In a Seller's market where prices are changing rapidly, you might even want to consider Active and Pending sales as part of your due diligence when coming up with value.
Be Yourself and Build GREAT Rapport
Show sellers the REAL YOU. Show them that you are confident in the purchase and take a genuine interest in their situation by asking questions about their family and even their life plans when the house sells. At the end of the day, just be human :-).
I promise if you combine all of these things, then you will greatly increase your chances of getting more offers accepted...in any market!