1. Offer Full Price or More. Money is a major factor in a seller’s decision, but not the only one. Holy shit – what are we paying this guy for this kind of insight. Surefire way to find yourself with the winner’s curse
2. Eliminate Seller Paid Closing Costs/Points. It is not full price if you then ask the seller to pay your closing costs. If you need to the closing costs covered, make sure your offer Nets the seller at least what a full price offer would. So basically, offer more money, no different than point 1 above.
3. Large earnest money up front. Show the seller you are committed and putting up risk to stand by your “word” (purchase agreement) to buy the home. Should more clearly indicate that what you are doing here is trading the potential loss of earnest money for a potential discount, there is a significant cost to this should the buyer find themselves in a position needing to walk away. Husband killed in a car accident a week before closing? Sorry lady, you are out of luck.
4. Cash is King. Go in with cash if possible to eliminate problems of appraisals and financing. Appraisals are a problem as prices are increasing. New regulations make it difficult for appraisers and banks to meet the market changes. How exactly does this help someone to win a bidding war? It’s idiotic to even mention this. If someone could afford the property without financing, why would they finance?
5. Closing date should match seller’s preferred date. Buyers agent should ask Seller’s agent what date the seller would like close on. Probably the only realistic suggestion in the bunch
6. Allow seller a couple extra days possession after closing this gives them time to move out and lowers their stress. (frowned on by attorneys.) Absolutely terrible idea, of course it’s frowned on by attorneys, because now if they decide they like the house and want to stay, you’ll need to go through the eviction process to kick them out. They could be in there for months, if not years, depending on the jurisdiction.
7. If buyer is financing, include a statement that the buyer will make up the price difference in cash if the home doesn’t appraise out for purchase price. (if buyer can do so) If buyer can’t pay cash, this will also relieve the concern of an appraisal problem. Oh, for f*ck’s sake, now we aren’t just going to risk getting the winner’s curse, we’re going to go ahead and guarantee it
8. If buyer is doing an inspection, have buyer provide a statement that they will not nit-pick any items to re-negotiate price, but only structural or mechanical failures. Inspections were intended to be a way for the buyer to make sure they were not purchasing a major problem. Too often this is now being used as a way to re-negotiate the price with the seller. Remove this potential concern for the seller. C’mon man, just all out with it, why not just suggest to eliminate the inspection contingency outright? Also, you’ve never heard of death by a thousand cuts? I assure you, those houses exist
9. If buyer is financing, have a well prepared Pre-Approval letter from the lender. Make sure it does not come across as a pre-qualification letter. Most buyer’s have no clue, if it’s got the bank’s logo up top, it’s official. Besides, pre-approval don’t mean shit if the deal can’t make it through underwriting anyway