Fatigue amongst Buyers and Realtors is becoming a common theme in our marketplace. Multiple offers prevail while final sales prices continue to shock many and set new highs. We are here to encourage our Buyers to stay vigilant, resourceful and to not lose momentum. As a team that represents 50% Buyers and 50% Sellers, we have the advantage of writing offers and reviewing offers every week. It gives us unparalleled insight into today’s market. We are here to help you every step of the way. Consider these tips when working with us to craft your offer: 

• Bridge/Hard-Money Loans: Cash is King – this is a saying that absolutely holds true in our current marketplace. Some Buyers are choosing to do Bridge Loans or Hard-Money Loans in order to be cash Buyers. If you are interested in knowing more about this process, please let us know and we can introduce you to a great resource.
• Contingencies: Most, if not all, winning offers on pre-inspected homes are non-contingent. This means you are waiving your loan, appraisal and physical inspection contingency for the property. Of course, we will only advise this for homes that have been fully inspected and when the Buyer has the adequate means to “make up” the difference should an appraisal issue arise. Please make sure you work hard to have early conversations with our team and your lender on these topics.
• Closing Date: Cash offers are able to close escrow much sooner than typical conventional loans making them more attractive (think “bird in hand”). Remember to engage with your loan officer to see the quickest you can offer to close escrow. 
• Rent-Backs: Many Sellers within our marketplace have not identified their next residence and therefore might request a “rent back” where they would become tenants in the home you now own. Allowing a Seller to stay in the home for a certain period of time (many times free of cost) is a great leg up in a multiple offer situation. Lenders typically allow up to 60-days of a rent back. Please ask your lender what their rule is. If you would like to see what a Seller in Possession document looks like so you know what to expect, we’d be happy to send you a copy.
• Deposit: The Liquidated Damages Clause in our contract caps a deposit at 3%. For this reason, we recommend a 3% deposit be placed in escrow. However, you can offer to get your 3% deposit in the bank within 24-hours to ease a Seller’s mind. 
• Down Payment: When reviewing offers, a Seller likes to see a high down payment. If your down payment is not high for a reason, please always share the reason. Perhaps, you are qualified for a lot more but want to take advantage of low interest rates. Or, you want to reserve cash for future improvements, etc. Always share if there is a reason.
• Misc. Seller Fees: Miscellaneous Seller fees such as the County Transfer Tax ($1.10 per thousand dollars) and Home Warranty can be paid for by the Buyer. Feel free to offer to pay for them.
• Be Early: If the offer date is 2 p.m., consider sending it in at noon. The first offer is often the most read offer as a Seller is excited and relieved to know their home is going to sell. They appreciate the first offer and often refer back to it.
• Stand Out from the Crowd: By writing your best offer first, you goal is to standout from the crowd. You may just get lucky that if you win by enough of a margin, the Seller just signs your offer. This will save you money as a second round of negotiations almost always increases the price. If it goes to a second round, Sellers also always tend to favor the offer that won out of the gates.
• Lender: Be sure you understand your finances inside and out and that you are using a respected lender in this marketplace. Just as Realtors have reputations, Lenders have reputations (especially when it comes to appraisals). Ask us how we would evaluate your Lender with the Sellers. If it is not good, consider making a change. Ask your Lender to call the Listing Agent and share your financial strength and their ability to close the escrow on time. On the offer day, you can help us by reminding your Lender to do this.
• Consider Approval by Two Lenders: If you are nervous about an appraisal, consider beginning the process with two lenders and paying for two appraisals. Ask us about this option and we can walk you through the pros and cons. 
• Be Available: Things can happen quickly during offer review. Make sure you are on standby and ready to make fast decisions if we reach out to you with questions.
• Be Aggressive: If you receive a courtesy call telling you there is a pack of offers all together, somebody has to win. Don’t just join the pack again. You have to jump ahead of the pack to be the winner. 
• Learn and Pivot: If you don’t win, learn why and discuss what can be learned from the situation. You will get a house and will be even more ready the next time around.
• Consider Back-up Position: This is a tough market and deals are falling apart and people are walking away from their deposits. The odds are low, but always consider going into back-up position. Ask us about this opportunity. 

As always, we are here to answer your questions!

Dana Green