« The Basics - How to Get Your Offer Accepted With the First Page of your Purchase Contract »
This is a good one for Buyers and Agents alike. How do you get your offer accepted? Follow these simple pointers.
1. Always use the computer generated form, it's more professional looking. In CA we have Winforms, you can fill out all the fields, it's purty. If you can help it, never write a contract by hand. This ensures legibility and listing agent confidence in your attention to detail. Besides, sloppy handwriting sucks.
2. Complete ALL of the pertinent fields. This includes financing (if used). Agents, if you leave this blank you're telling your client, the seller and the other agents you don't know about your client's financing or you were to lazy to fill it out. Learn your trade or ask your client's lender, but fill these out. The listing agent will be impressed.
3. Make sure the numbers work! Lowball pricing will make you think you got a great deal, but might not get the offer accepted. The seller has to like your number too. Give a deposit that says you have a spine. A $1,000 deposit on a $700,000 purchase looks weak. I advise 1% - 3% of purchase price normally. Literally, make sure the numbers add up and are in the right place. I've seen some interesting applications of math here. The down payment is NOT the deposit and the financing amount should not go on the down payment line. Don't make the seller and agent guess how you are applying your money. DO THIS CORRECTLY, PEOPLE!
4. Understand who pays for what. There are different service providers in the transaction that have different fees and costs. Some are customary, some are paid only by one or the other principal (just the buyer or seller). Know these well, since some of these are cause for poor negotiations.
5. Know exactly what your "due diligence" period entails. In CA it's called the "Contingency" period. Know exactly what a buyer has to do in this period, when they have to do it and what happens if they don't. Be reasonable with the amount of time needed to conduct due diligence. If you are all guts and know you can swing this in a short time (All Cash offer), then why drag it out? Tell the seller how quick they can get the hell outta Dodge by how soon you can fully commit to this purchase. BE WISE WITH THIS STEP.
6. Call the Listing Agent before submitting your offer and establish a relationship. Buyers, your agent has to sell your offer to that listing agent first. If your agent is a good student of sales and building business relationships, your first page will be well received.
Good luck out there!
Marvin

Monday, March 23, 2009 at 8:24AM
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