Updated: Mar 5, 2021
Are you looking for tips on how you can make your client’s offer stand out from that of your competitors? If that is the case, we will take you through some tactics that will aid you in writing a very comprehensive offer that is sure to stand out in the bidding war that is today’s market.
Ensure that you get your offer on the top of the pile. Set up automatic notifications for each of your buyer’s property profiles to be updated instantly about new properties as they come on the market. Make showing appointments and submit offers as quickly as possible.
Offer your best deal first
Do not play games with the seller; tell your clients to present their highest and best offer upfront. You may need to show your clients homes that are listed below their budget so that they can afford to make an offer over the asking price in order for them to get a home in this market.
Accompany your offer with a letter
Remember that a real human on the other end makes these decisions; thus, when you want to have your client’s offer accepted, tell your clients to show the seller who they are as people. It does not need to be a formal letter; even a quick message is just as good.
Make the seller know who your clients are and what their plans for the property are. This can help your client’s offer, but it also has the potential to hurt them, and for this reason, it is recommended that your clients do not reveal too much personal information or include a picture of themselves or their family. Prejudice and unconscious bias are still prevalent in today’s society.
Have your buyer pay for repairs
A good way to make your offer stand out is to have your buyers pay for repairs. In this situation, you will let the seller know that following an inspection, your buyer will not make any repair requests of the seller and therefore will handle all repairs themselves. If this seems scary for your buyer clients, let them know that if the repairs are too much, or more than they were expecting, they can always back out during the due diligence period, but setting the tone up front that they are willing to pay for all repairs will surely make your offer stand out.
Give an appraisal gap coverage
To ensure that your offer is going to be accepted, you more than likely will have to go beyond the asking price. However, when offers are made above the asking price, there is a probability that they may be above what the bank appraises the property for. Let the seller know upfront that if there is a gap between the appraisal and the offered price, the buyers are willing to bring cash to the table to close the gap. This will give the sellers more confidence in your client’s offer.
Shorten your due diligence period
Having your buyers present an offer with a short due diligence period shows the sellers that they are serious about the property and ready to close right away. This will make your offer stand out from others that may have longer times to closing.
Alternatively, in this market, sellers are often surprised at how quickly their house sells and may not be ready to move out that quickly. It may be good to include a note with your offer that your buyer can close quickly or more slowly, should that be the preference of the seller.
Increase earnest and due diligence monies
This is another way for your clients to show the seller that they are serious about moving forward with the property. Increasing the earnest and due diligence monies offered to the seller will show them that your client is invested in the property and is more willing to close the deal without headache than a buyer who offers less due diligence or earnest money.