Chances are when you decide to make an offer on a house you love, you want it accepted, or at least to reach agreement with the seller after some negotiations.
It can be challenging enough when it’s just you and the seller, but when there are multiple offers, the odds are not in your favor to begin with.
You want to put your best foot fonvard, of course. But there are some key ways that buyers can, and do, sabotage offers. The good news is these are all unavoidable.
This will ruin your chances of getting your offer accepted pretty fast, and be an immediate turnoff. Most buyers need to use a mortgage to buy a house so you MUST get pre-approved, and not just pre-qualified, by a reputable lender who does a thorough job of checking your credit, assets, income and debts.
If you and your lender cannot document you are financially qualified to buy the property, and dose, why would any seller accept your offer?
Not including a lener will send a pretty strong message to a seller that you are not financially qualified, you are not taking the process seriously, or both. And be sure the letter is current. Pre-approvals need to be updated after a period of time – check with your lender on expiration – and an outdated letter will wave a red flag.
Submitting a low ball offer is a quick way to sabotage what you are submitting, especially in a market where there are multiple offers and many homes are selling at or above asking price.
In certain price points lower offers may be
less of an issue, typically at the high end, but this is something to discuss with your agent.
The risk with a low offer is that you will not only sabotage your chances of negotiating with the seller but your offer might simply be rejected
out-right, without a counter, or even ignored. And while sellers may be counseled by their agents to not take low offers personally, the reality is many will be insulted and that harms your chances of further discussion, or eliminates them entirely.
Offers are NOT just about price. A whole host of issues with terms and conditions, other than price, can prevent negotiations or at least make them more challenging. The more demanding you are in your offer, the greater the likelihood the seller will say no, especially when there are cleaner offers to consider. Some of this depends, of course, on what is important to the seller. For example, if they really want or need 30 days and you demand 60 or more, or vice versa, that’s a problem.
If your offer is a low one plus you are making requests the seller deems unreal.istic, your offer is at even greater risk of rejection.
Asking for the seller to pay your closing costs will likely be an issue, at least in a seller’s market. You might demand all the appliances, as well as request the seller leave other items, but if the seller already stated certain appliances aren’t staying. and you are asking for personal items, that will also make your offer a no go. Put yourself in the seller’s shoes … are you being unrealistic about your terms and conditions?! And adding insult to injury by including a low price?
What is typical for a deposit (EMO) will vary by the market, but a low deposit is certainly not going to demonstrate to the seller you are a serious buyer. This is even more critical when there are multiple offers and others are submitting substantial deposits. If your deposit is lower that what is typical for the marketplace, or not competitive with others, you can be sure the seller will not be impressed, and the listing agent will be advising them on this as well. Don’t be cheap and sabotage your offer!
This may not be totally in your control since you are working with a buyer agent (you are, aren’t you?) but any offer submitted should be complete, without errors, contain all the appropriate signatures, and include all the necessary paper work (that will vary from state to state, and even by mail
Before you sign you should review the offer in its entirety, whether you do this
They say “when you snooze you lose” and that’s certainly a strong possibility in a busy seller’s market. Waiting to make an offer because you need to think about your decision will certainly sabotage your offer pretty quickly in many cases.
This is not to say you should decide hastily … that can be a huge mistake, too. But being prepared to move forward, by being pre-approved, understanding the local market conditions, and creating a strong offer and clean terms and conditions, will maximize your chances and avoid sabotaging all the efforts made in creating an offer in the first place.
This is key, and it covers a lot of issues. The local market conditions – such as buyer demand and available inventory -play a big role in pricing, whether there are multiple offers, the types of terms and conditions included in offers, how quickly you need to move, and more.
Your agent will presumably explain these conditions to you and help you understand what they mean for your offer strategy. If your agent doesn’t, you have a more serious proble1n!!.
Not knowing the local market conditions, or worse ignoring them and just going down your own path, despite the best advice, will surely sabotage your offer. Yes, you have the right to make decisions when offering on a property, but ignoring good advice will have consequences.
It’s your choice!
If you want the house, listen up and put your best foot forward!
For Immediate Release
October 03, 2011
Edward Vivona, one of the top real estate agents in Monmouth and Ocean County, New Jersey is transforming the way real estate agents are marketing homes. His approach takes full advantage of the latest technology and the current state of the real estate market.
Distinguishing himself from other real estate agents, Edward Vivona is stepping outside of the box and taking real estate marketing to another level. The standard approach to marketing that 95% of real estate agents use consists of taking a set number of photos and putting them on the MLS, creating a virtual tour using those same photos (with the MLS Logo on them) and then placing their sign on the front lawn of the property they are trying to sell. In the current real estate market, this old way of doing things is not proving to be very effective yet nearly 95% of real estate agents use this very same approach.
Edward Vivona is making it his mission to get his clients homes sold by utilizing new ideas and taking advantage of the latest technology. He is creating Custom Property Websites for ALL of his listings. The websites feature at least 40+ high-resolution photographs along with useful links such as area maps, school reports and neighborhood resources. This information is priceless for buyers who do not know the area. The website URL(Domain) is the exact property address for the listing, making it much easier for potential buyers to find the site and more importantly, for sellers, the website is indexed by Google much quicker thereby increasing the properties exposure on the web. Additionally, Edward is the only agent currently displaying the website address prominently on real estate lawn signs. He is also making use of custom home banners. What differentiates him from other agents is that he uses the banners to promote his clients homes and NOT himself. The banners are interactive and when a potential buyer clicks on the banner, they are taken directly to the properties custom website.
Professional quality photographs highlighting a homes features are necessary in order to properly market a client’s home. Edward has taken his professional photography skills and created outstanding photographs that tell a story about the home. He does not stick to the standard formula of 12 to 15 photographs that most Monmouth and Ocean County Realtors use and put on the MLS. Edward has found that the more photographs used, the higher your property will rank on major home search websites. He manually uploads his high resolution photographs to the prominent real estate home search websites, displaying his listings by telling a visual story through photographs.
“When it comes to marketing homes, I firmly believe that the amount of photos should equate to the value, and the size of the home. Simply put, larger homes, high priced homes have more to offer, more to photograph, require more to tell the story. I’ve been on listing appointments where the previous agent pursing the opportunity told the homeowner, 12 photographs was all that was allowed or that the agent wanted to build some intrigue in the home in not showing everything. In my opinion, this is ridiculous! It’s not a price point thing, as my camera doesn’t stop until the story is told in its entirety regardless of size or price, be it 25 or 100 images, whatever is necessary. After all, I am already at the home, how much longer does it take to tell the whole story. Buyers want to see photos before they will even take the next step, consider scheduling a showing on the home, especially if they are not from the area. My approach, my exclusive property websites provide them exactly what they’re looking for.”
To see a sample custom single property website, visit http://www.3WithersLane.com