The Real Deal: Make them an offer they can’t refuse
July 15, 2020
Rob Lotufo, Ozark Properties Group, Fathom Realty
I have a client that I have been working with for nearly six months now. They're looking for a starter home. They will be using a government loan, either FHA or rural development. Locating this kind of home in today's market is about like finding a needle in a haystack, especially when you want one in or around the hundred-thousand-dollar mark.
Game On
We found one. It was a late-model double-wide on a solid foundation with a shop and above ground pool and everything they needed. Posting came out late Wednesday afternoon. We set up a showing for early Thursday morning. It was love at first sight. Everything fit their needs and they were ready to place the offer. I had had their loan pre-approved for several months and I got that updated and had a letter ready. We offered some earnest money and the quickest closing date we thought we could muster. We offer full price, and added some money for a closing cost contribution. My client signed the contract and I promptly hand-carried it over to the listing agents office.
Nail Biter
Out of professional courtesy, I gave the selling agent until 3 p.m. to get a decision. In a situation like this, the main thing that can go wrong for the buyer is if a better offer comes through before his is accepted. After a few hours, the listing agent told me that he probably could not get a decision by 3 and would need till 6 or 7 that night. Again out of professional courtesy I agreed to his request. We waited with bated breath. Unfortunately, at 3 p.m. the selling agent called me to let me know that he had received a cash offer for full price and that his client would be accepting that one.
Bummer
We all followed protocol, and he served his client by providing him with the most favorable contract for the highest price. Unfortunately my buyers did not get the house they had hoped for. I had done everything within my power to present a favorable offer and in the end we did not succeed. What's the take back here?
Take a Deep Breath
A good home is hard to find. A good home at the right price is even harder to find. In today's market, when you're out looking, you must use all the resources available to you. Quite possibly the most important is a good realtor. You want a realtor that has good rapport with other agents, knows the rules and regulations, and can use all the tools available to him to get your offer presented and accepted.
Prepare
Be ready to act fast. Fifteen minutes may make the difference between you getting a deal and someone else getting it. Make sure your realtor is making you a priority. If you ask for a showing and he is delinquent in responding to you or put you're showing off to another day, he may be too busy you take good care of you. You should always make sure you feel like your are important to him and your business is at the top of his list.
Keep your act together
Have your financial situation under control. Whether it's a letter from a lender, or just a game plan for how you plan to pay for this transaction, it is critical that you have confidence and the ability to perform on whatever your contract calls for.
Upside
We didn't get that home this time, but you know what? There are other fish in the sea. We did all we could and acted ethically, so did everyone else involved. In a case like this, a good realtor will be supportive, continue to help you look for properties, and try to be as proactive as possible when something comes up. Many times the home may seem perfect at the time, and be a big disappointment when it does not come through, but often it's followed by an even better opportunity. We'll keep looking until we find the home and the situation that is just right for this client. That's what we do, and we try to do it in the best way we can.
Good luck out there, house hunters, and be prepared!
I have a client that I have been working with for nearly six months now. They're looking for a starter home. They will be using a government loan, either FHA or rural development. Locating this kind of home in today's market is about like finding a needle in a haystack, especially when you want one in or around the hundred-thousand-dollar mark.
Game On
We found one. It was a late-model double-wide on a solid foundation with a shop and above ground pool and everything they needed. Posting came out late Wednesday afternoon. We set up a showing for early Thursday morning. It was love at first sight. Everything fit their needs and they were ready to place the offer. I had had their loan pre-approved for several months and I got that updated and had a letter ready. We offered some earnest money and the quickest closing date we thought we could muster. We offer full price, and added some money for a closing cost contribution. My client signed the contract and I promptly hand-carried it over to the listing agents office.
Nail Biter
Out of professional courtesy, I gave the selling agent until 3 p.m. to get a decision. In a situation like this, the main thing that can go wrong for the buyer is if a better offer comes through before his is accepted. After a few hours, the listing agent told me that he probably could not get a decision by 3 and would need till 6 or 7 that night. Again out of professional courtesy I agreed to his request. We waited with bated breath. Unfortunately, at 3 p.m. the selling agent called me to let me know that he had received a cash offer for full price and that his client would be accepting that one.
Bummer
We all followed protocol, and he served his client by providing him with the most favorable contract for the highest price. Unfortunately my buyers did not get the house they had hoped for. I had done everything within my power to present a favorable offer and in the end we did not succeed. What's the take back here?
Take a Deep Breath
A good home is hard to find. A good home at the right price is even harder to find. In today's market, when you're out looking, you must use all the resources available to you. Quite possibly the most important is a good realtor. You want a realtor that has good rapport with other agents, knows the rules and regulations, and can use all the tools available to him to get your offer presented and accepted.
Prepare
Be ready to act fast. Fifteen minutes may make the difference between you getting a deal and someone else getting it. Make sure your realtor is making you a priority. If you ask for a showing and he is delinquent in responding to you or put you're showing off to another day, he may be too busy you take good care of you. You should always make sure you feel like your are important to him and your business is at the top of his list.
Keep your act together
Have your financial situation under control. Whether it's a letter from a lender, or just a game plan for how you plan to pay for this transaction, it is critical that you have confidence and the ability to perform on whatever your contract calls for.
Upside
We didn't get that home this time, but you know what? There are other fish in the sea. We did all we could and acted ethically, so did everyone else involved. In a case like this, a good realtor will be supportive, continue to help you look for properties, and try to be as proactive as possible when something comes up. Many times the home may seem perfect at the time, and be a big disappointment when it does not come through, but often it's followed by an even better opportunity. We'll keep looking until we find the home and the situation that is just right for this client. That's what we do, and we try to do it in the best way we can.
Good luck out there, house hunters, and be prepared!