What are 4 Proven Strategies to Getting YOUR offer accepted?
Hi everyone, Kevin Yoder here with Yoder Real Estate Powered by EXP. Back to answer a question for you, which is: how can I get my offer accepted if I’m a buyer in this challenging market? What are four ways that we can get our buyers’ offers accepted in a very challenging seller’s market?
This is something that we are asked all the time, and it’s probably the most popular question given … when we have a home hitting the market today given the supply and demand nature of this real estate market. A seller’s market is defined by inventory, and supply and demand, which simply means is that there’s more buyers than there are homes available. When a home hits the market, especially if it’s in a hot area, defined by a buyer concentration for that home, typically in these sweet spot price points under 500,000 if you’re in West Michigan somewhere between, say, 150,000 and 250,000 would be a certainly a sweet spot.
These are homes that there’s sometimes 10, 15, 20, 30 offers for them. If you’re the buyer that wants to live in the home, and not drop by and see someone else grilling a burger in your backyard, pay attention to this because I’m going to give you four strategies. Make sure that your agent is employing all four, or at least most of them. It’s probably going to take all four plus additional ones that I can always share with you later on. But these are the main four. There are others, but these are the four today to keep this video nice, and short, and succinct.
Number one. This is no surprise. If you’re a seller selling your home, you want them to show you the money. So, it’s going to be price. Now, this is where a lot of agents and their buyers get off track. Mostly it’s the buyer’s mindset around this one. Home is listed for X. Let’s offer Y, which is less than X. Why is that? It’s because we are trained and programmed to never pay. Our parents told us and grandparents told us, “Don’t ever pay list price for a home.” Well, why is that? Why is that? When you walk into a store, and there’s a product on the shelf if it’s at a retail environment, do you barter for the price or do you pay the price? Well, I think we know the answer to that one.
It’s a matter of mindset. Remember, this is so important. The list price, that’s not automatically a super accurate number. It’s in alignment with what the agent thought at the time of listing based on data usually. So, it’s a combination of a seller and an illicit agent coming together and forming an opinion on price. Does it mean that’s the exact sweet spot right on the money? No, it does not. Does it mean it could be high? Yes. Could it be lower than market value? Yes. It could be right on the money based on what an appraiser is ultimately going to determine.
What does that mean to you? It means: do you love the home? Do you have to live there? Do you see yourself driving down the street pulling in your driveway, opening the garage door? “I’ve got to live here. This is home. Home is where the heart is.” If it’s that home for you, remember … This is important. Every $1,000 that you finance is $3 right now. $3 a month. You can increase that price by $10,000. And how much would that be? You could pay an extra $10,000, and your price on your home is not going to be that much. I mean, think about that. $3 for every 1,000.
We’re not increasing your monthly payment by that much by going up. That’s completely up to you though. Just make the decision. If your payment was, say, $30 more a month in this example, would that break the bank? If the answer is no, then it might be something you want to move on. Because $30 usually doesn’t change anybody’s lives. Take it a step further. You could add $20,000. Now, the reason which would then … on top of what you wanted to pay or were going to pay, that’s only going to increase it by a slight amount more.
This is only because interest rates are super low. 3%. This is unprecedented, which is why it’s super important to be clear on where we are, where we were, and where we might be going. Where we were, interest rates were up in the 20% range back in the ’80s. Then they’ve been around eight, nine, five, six, four, three. Here we go, threes. We haven’t seen interest rates this low before. If you’re a home buyer, perspective is super important. It’s almost free. You can raise the price and have it not impact your payment. It’s all about the payment unless you’re paying cash. Right?
Okay. Secondly, time to close. Let me make these ones shorter. Time to close, meaning how fast can you get to the closing table. Why does that matter? Because the seller has hopes, and dreams, and wishes of their own, and they’ve got to get there. If you can present an offer to that seller that is going to get them where they need to go faster, that’s going to be more appealing. That would be shorten the time to close. How do you do that? Pay cash or get a lender that can close quickly and then prove that. Okay. You can prove that in the preapproval letter.
Number three, possession. How much time can that seller stay in the home after close? If it means something to you but not as much as the seller, then offer possession period after close without paying rent. There’s one way. The seller … this is all about timing. How can we make this more desirable to that seller? Can they stay in the home? Can you stay where you are for another 30 days to let the seller stay where they are, so they can navigate from home A to home B?
And finally … Not finally in the way that there aren’t other strategies. We use at least three or four more to make sure our buyers are winning the bid. But this final one is super important. The pre-approval letter, if you’re getting financed, you’re going against cash offers. How do you get that done? How are you the one buyer that lives in the home rather than driving by it with massive regret? Get a pre-approval letter if you’re financing that property from a lender who can prove that you can close faster. Why is that important?
Because going back to the time to close, this is about finality. A seller needs to know that they are going to get to that closing table within the defined timeline with very little or zero hiccups along the way. How do you prove that? That pre-approval letter from the right lender will state clearly we’re going to close fast. This buyer is rock solid. We’re going to get you there faster. You see that? And so that seller can rest assured that this is a solid offer. And by virtue of the language in the pre-approval letter, if your lender is really good they’ll pick up the phone, and they’ll call the listing agent, and let them know how good this buyer is. Meaning you. Okay?
Those are the four things. Price, time to close, possession period, and a rock solid pre-approval letter with the right lender. If you want to dive into the other strategies that we use here at Yoder Real Estate, or how do you actually win the bid … remember, these are only four. There’s probably at least … There’s three others that come to mind. We’ll share with you. We share with our exclusive buyers here to make sure that they’re the ones living in the home, not driving by with regret. We want to make sure that you’re a winning buyer in this challenging market. If you have questions or need anything from us, please reach out to us. You can find us online at yoderrealestate.com. Hopefully this video served you today, and I look forward to connecting with you real soon.
Asking yourself “what is the value of my home” in today’s market?
Check out our Free Online Home Price Estimation Tool.
Call me at (616) 942-2449 for a FREE home buying or selling consultation