Working with buyers? 5 tips to get under contract
1. Get pre-approved! In this crazy Denver market most listing agents won’t seriously consider your offer without a lender letter that shows you’re pre-qualified to purchase a home. Can’t blame them though, most homes nowadays, especially in the 350k and under market, are flush with cash buyers who can close fast and don’t need to worry about things like appraisal. Getting together with a qualified mortgage professional before you start seriously looking at homes is the best way to get started on your journey to home ownership.
2. Have a solid lender who is willing to go beyond the realm of normal duties. Recently I closed a buy side and when I asked the listing agent why we got the listing she said, “You and your lender both reached out and really reassured me that everything was good to go. We were looking for an easy closing and speaking with both of you really made us feel like everything would go perfect!” A small amount of effort can go a long way
3. Don't forget the little things. In this market things like appraisal gap or escalation clauses are becoming the norm. Small additions to your offer like these can really make it more sound and appealing to the seller. It never hurts to think outside the box here either. Closing sooner, paying for closing costs, paying for a moving service to the seller, and similar things can all add to your offer!
4. Do your homework! Is the seller a flipper who is only looking to make money? Perfect, bid high. Maybe its an elderly couple who have lived in the home for years. Perfect, write a letter telling them about your buyers and what they have planned for the home. Money isn’t always the motive, knowing their home will go to good people looking to cherish it as much as the sellers did could mean more than a flipper paying 5k over your bid.
5. Be realistic. This is by far the hardest thing to do when buying a home. You want everything to be perfect for your buyers, but chances are they won’t be. Especially when dealing with a market like ours where sellers aren’t fixing things up or leaving small things unfinished simply because they can. Prepping your buyers for this reality will save time and mental anguish for everyone involved. Remember, buying a home is only as frustrating as you allow it to be. If you know your buyers may end up putting in 20 offers before finding a home that’s fine but TELL THEM. Most people are ok with things if they know it will most likely happen. Our job as realtors is to make the home buying or selling process as least stressful as possible. Don’t be afraid to do your job.