Even in the usual fast pace of our current Denver Front Range market, it is tempting to think the only way for a buyer to be the winning offer on the property is to be the highest price. But what other considerations are in play?
Your goal is to have the greatest amount of leverage possible going into an offer and negotiations. Your agent should help in these four ways:
1. A proactive phone conversation.
This is from your agent to the listing agent for the property, to learn of all special needs and wants of the seller in a successful offer.
2. A strong letter of introduction.
This introduces the real estate and lender teams that work to bring the transaction to a successful close.
3. Quick contract dates and deadlines, when needed.
This is best especially in inspection, due diligence, and appraisal deadlines. The earlier you can make these, the more seriousness perceived by the seller.
4. In some instances, utilizing inspection and appraisal waivers, flexible closing and possession dates.
A buyer who promises to eliminate inspection-related repairs, cover any gap between appraised value and offer price with extra cash at closing, or allows a seller to stay in the home for 30-60 days after closing will stand out.
There are also two contributing factors from a lender partner for a winning offer:
5. A strong lender letter stating pre-approval.
There is a difference between pre-qualification and pre-approval. The latter means more due diligence of the buyer’s qualifications has been done and the lender is confident in the buyer’s ability to close.
6. A proactive phone conversation from the lender to the listing agent for the property.
This shows professionalism, allows explanation on how the pre-approval was determined, and adds confidence that the transaction will close.
A bonus in certain situations: offering special talents and expertise of the buyer to the seller.
For example, in a past transaction an offer included professional services by the buyer of interior design expertise ideas for the seller’s next home.
The best offers are going to be better than others because you are better prepared when making an offer.