Too Many Real Estate Buyers? No Problem
Not A Problem When The Real Estate Marketplace Has Too Many Buyers If You Have An Experienced Real Estate Agent Working On Your Behalf.
Real Life Success Story
(Names changed for privacy)
Barry and Candy found the perfect home! They had just gotten engaged and the 3 level San Francisco Condo was located right between their two jobs, with great weather and enough closet space and parking. The condo appeared to be in great condition—built in the mid-nineties—but no one knew the status of the roof. Unfortunately offers were due the next day. We barely had time to write the offer and go through the extensive real estate disclosure package. On counseling them I told my clients to take into account that it would probably need a new roof soon.
“Plus,” I advised, “be prepared to put out additional money for miscellaneous and for moving expenses.” I certainly did not feel comfortable telling this lovely couple ‘No Problem’ to make a quick sale.
Get Pre-Approved With A Real Estate Lender Early
Luckily my motivated real estate buyers had already gotten their financials pre-approved with a lender, so we could waive the loan condition. To make the Seller even more comfortable and increase our chances of success, we had the lender give us a Financial Pre-Approval Letter to go along with our offer. Next we compiled a friendly, “warm and fuzzy” introductory letter to the Seller with enticing photos of the newly engaged couple with their dog. We were literally working every angle to make this a success story.
How Do You Determine A Fair Real Estate Price And Still Win The Negotiation?
Keep in mind that what these Princes and Princesses want most is money. So how did we get this desirable home without way overpaying? Well, the current real estate market is what the current real estate market prices are at the time. What a similar property sold for two months ago may not even be current enough. Best to ask the Real Estate Agent representing the Seller how many disclosures are out—that will give a good indication of the level of interest.
Twelve packets were out, so we figured a half of those buyers will be bringing in an offer. Then we figured that with each offer the price will be increasing $25,000 to $30,000 on a million dollar plus property.
That night we heard on the news that the Warriors basketball team had procured a lot close by. We conferenced once again and upped our offer. Late the following evening we learned—Hooray—that we were the winning bidder, with a few other potentials nipping at our heels. If it were not for our last go-around in price we would have lost this battle. Some battles are tougher than others, but if you are an experienced real estate agent you will win out.
Succeeding in real estate is not just the luck of the draw. Real estate coaching, being mentored or taking seminars such as my ClientConnect Training help. Also recognizing and representing motivated real estate buyers can further stack the deck in your favor.
Write the best offer your buyers feel comfortable with, because you probably will not get a second chance. Yes, the Seller could counter your offer, but even if he is gluttonously greedy, he might not want to risk losing his best offer.
Remember that as you enter any battlefield in order to win—always be prepared!
Be aware that any clients names have been changed to protect their privacy. Furthermore, Paula Pagano does not accept any liability for the content of any Blogs and this Website or for any actions you take or resultant consequences of actions taken based on the information provided in this communication. Any advice is my opinion after being a 35 year experienced real estate agent in San Francisco.
Good “Words of Wisdom”!