Frustrated with having to compete in multiple offers?
Here are some basic TaylorMade tips on how to secure that dream home. Contact Ryan Taylor for the whole version.
How Price & Subjects affect the deal:
- 99% of the time price is the biggest winning factor in an offer. The higher the price the more likely the deal will go through. The exception to this is the subjects. A lower priced offer that is subject free deal can beat out a higher priced offer with lots of subjects. How to get around this? If you can’t get a written preapproval from the bank and go subject free, you may have to offer much higher than other offers. This is why you should always talk to a mortgage specialist and get your finances in order before getting committed to a perfect home and you may miss the boat in a hot market.
- How your price and subjects are presented can make all the difference in the world. Money talks and higher offers usually make the lower prices walk but if you have a savvy experienced realtor he or she may be able to convince the sellers that your offer is better based on multiple factors. These factors could include personal touches, other parts of the offer which are not mentioned by the other offers and a realtor who has integrity and a good name in the business which can pull a lot of weight when presented to the sellers. Presenting in person can also help the case as you may get a chance to pull on the heart strings of the seller without such influence of the listing agent.
Common myths about multiple offers:
Myth #1- Going through the Listing Agent will secure the deal
Ryan could write an entire article on how this is screwing everything up in the real estate world. First, Ryan would just like to stress the fact that the listing agent owes what is called a fiduciary agreement to the seller and not to you the buyer. Money talks and trumps all… not the listing agent!. By going through the listing Realtor you are almost certainly going to overpay and you have no real legal recourse should your subject free offer be accepted and there is a secret xgrow-op in the home, the foundation is faulty, pipes are leaking or there is some other major problem with the home which could bankrupt you in the future. The listing agent’s job BY LAW is to get the seller as much as possible. They do not work for you and although they may seem nice and your friend, they are just doing their job to get the seller as much out of you as possible. Do not go through the listing agent. What is even worse about this is there seems to be a big population of people who do this thinking they are doing the right thing. This only drives prices up and causes those who could once afford a home for the first time to no longer be able too, as they are now paying way over and above what they should. Don’t believe me? Contact the Real Estate Board and ask why they want to ban all Realtors from double-ending deals and representing both the buyer and the seller. Ethical Realtors with Integrity could go on and on till the sun goes down on this topic but, certain people will still feed this cycle causing themselves and others more trouble than what they know. You can also read more on the benefits of using a realtor here
Myth #2 -You can’t have subjects in your offers or get inspections
This is not true. Skipping inspections is a big no no! You can always get an inspection done before the offer is presented and Ryan Taylor has a list of certified inspectors on retainer available to do an inspection at your convenience. Subjects can also be shortened to sweeten the deal. Instead of doing 10-day typical subjects do 4 or 5 days and if you need too, extend those subjects. Plus, money talks right?! If you have a great offer with 3-day subjects which is just subject to title clearance and inspection and they go with an offer for less but no subjects, there is a good chance there is something wrong with the home. Be safe, not sorry.
Myth #3 – You need to be the first offer in
This is the complete opposite of what you should do. Unless you have a great Realtor (like Ryan Taylor) who can sometimes get you in ahead of the crowd to present a great offer, you want to be the last offer in. Sometimes by asking certain questions, you may be able to trick the sellers into giving you information about the other offers giving you the upper hand. Ask Ryan Taylor about how to do this…
Best Multiple Offers Tips
- Hire Ryan Taylor to be your buyer’s agent 😉
- Call Ryan Taylor and ask him how he can help. Get the experienced TaylorMade real estate services. He is never too busy for your calls. This is just the tip of the tricks Ryan has up his sleeve and he doesn’t want to give away all of his secrets to the competition. Give Ryan a call.
- Get a written pre-approval from your mortgage specialist. This will save you a bunch of a headache in the future.
- Spend time looking with Ryan Taylor with zero pressure before making that offer. Don’t jump in and get a Realtor who will rush you. Take your time. It’s likely one of the biggest investments you’ll make in your life.