We all know the market is crazy right now. I speak with agents every day who are struggling with the same issue of how to help buyers get their offers accepted. Here are some tips and tricks that our agents use that have been working.
1. Make sure you call the listing agent. I know this might seem like a no-brainer but you’d be surprised how often it doesn’t happen. As a listing agent, I don’t always get a call from the buyer’s agent. Before an offer is submitted, call the agent and ask what specific terms the sellers want. It also helps to foster a relationship with the other agent. Let them know that you and your buyers are willing to work together in whatever it takes to get a deal done. It also allows you to negotiate terms like rent-backs, response times, contingencies, or things that can be favorable to the sellers, thereby putting your buyer in a better position to win. It’s not always about the sales price; better terms or contingencies can win out over a higher price.
2. Offer a higher earnest money deposit or EMD. The EMD shows sellers that your buyers have skin in the game and that they’re serious. A higher EMD deposit means that the buyers are willing to put that money on the line in case something goes wrong with the contract. This shows the sellers that they’re willing to financially commit to the deal upfront.
“Many agents are struggling with the same issue right now.”
3. Include a buyer love letter with your offer. Sometimes appealing to the seller’s emotions can make the difference when winning bids. It’s hard to believe, but I recently had a seller accept an offer that was slightly lower in sales price because the buyer wrote a heartfelt letter and included a picture of their family dog. You see, buying and selling a home is an emotional experience and sometimes it can help to enhance those emotions. If possible, have your buyers write a letter to the seller about what they love in the house and how they can envision their lives living there. Make sure to include the letter all in one document with your offer and contract so the seller has no choice but to review them together.
4. If possible, include an escalation clause with your offer. You should discuss this with your clients and with the listing agent first. I have seen several bids won recently because of escalation clauses. Let’s say your buyer is pre-approved and willing to pay $475,000 for a home. You write an offer for $465,000 without an escalator. Then another offer comes in at $470,000 and wins. Would your clients really want to miss out on their dream home because of 5,000 dollars? Probably not. It’s best to have this conversation with them and offer an escalation clause of X amount over another offer up to a certain point. This can help put your buyers in the best position up front without having to constantly go back and forth in negotiations.
These are just some tricks to your buyers win bids. It’s not always about the sales price. We at EXIT First Realty offer daily FREE coaching like this to help you close more deals. Our coaches provide real-world, day-to-day, street-smart strategies that can help you make more money. Contact us today for a free strategy session.
