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In a world where buyers can find homes faster than we can pass them along, this is one of the true benefits we can offer our clients. Although the overall purchase price is the factor with the most weight given to it, there are several others we can work with to help our clients stand out.
1. Aggressive closing dates, large deposits
The most popular ways to put forward a strong offer are to have aggressive closing dates and a large deposit to hold back in escrow.
After price, these are typically the second and third items looked into, respectively. Chat with the loan officer to see how tight you can realistically make the dates without requiring an extension.
Once you make a determination, explain to the listing agent the conversation you had and that those dates are not just feasible, but to be expected.
Follow that up by making the deposit a full lump sum at contract execution rather than in various disbursements after inspection, etc. Putting it all upfront shows the seller just how into the property you are.
2. Pre-approval letter
I work with many of the same loan officers deal after deal. We have come up with a pre-approval letter that shares with the sellers that all income and asset documents have been received and reviewed, credit run, and file is ready to move to underwriting.
This shows that the buyer is pre-approved, not just pre-qualified. Asking the loan officer to provide you with the automated underwriting engines (AUS) findings and adding a brief explanation on how to read them also shows the homework done by the loan officer to pre-approve the buyer.
This can express to the sellers just how strong of a mortgage candidate the prospective buyers are, and it can give them confidence the deal will go through according to plan.
3. Waive inspections
Waiving inspections is one way of getting your clients into a home. The best way to do this and protect your buyers at the same time is with “for buyer’s purposes only” inspections.
This gives your buyers a chance to back out if they perform an inspection and severe issues come up. This is also a situation where you, as the professional, should know the property and have a good idea of what condition it is in.
It is out of our scope to be building inspectors, but you should be able to recognize asbestos wrap, missing plumbing, outdated electrical, past its life roof, etc.
4. Send in a full offer
Sending over a full offer also is a great way to gain acceptance. When submitting an offer, always be sure to include the pre-approval letter, copy of deposit check and all related disclosures and addendums.
If it is a FHA mortgage, be sure to include the FHA Amendatory Clause as well. This way the seller has everything and can execute the contract without needing to go back and request further information.
Creating strong offers that beat out other buyers and getting your client the home they want is a win for all.
The client will see the results you can create, and you will be one step closer to a closing.
Proving you are a worthy buyer’s representative to your clients will help you gain referrals, and put you in good light with other agents you do business with.
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Michael Maynard is CEO of Branford, Connecticut-based New Neighbors Inc. Follow him on Facebook and Instagram.
