In the current market, buyers are often competing against multiple bids. In these cases, it is important to remember that price is not the only factor in determining the best offer. I have often successfully negotiated to get my buyer’s contract accepted, even when we were not the highest bid. The key is to understand the motivations of the sellers, and provide them with a smooth, worry-free sale, that meets all their needs. Specifically, that would be:
A) Make the contract as clean as possible. Do not add any special clauses, contingencies, or conditions.
B) Contact the seller (or their agent) and ask for their ideal terms. What is their ideal closing time frame? Ideal occupancy date? What items in and around the home would they like to take, leave, or sell? Giving the seller flexibility, as they are lining up moves and their next purchase, could be worth a lot of money to them.
C) Waive your financing contingency. If you know you are qualified for the loan, take the concern away from the seller.
D) Waive the appraisal contingency. Or place a cap on it, such as “Buyer’s agree to waive the appraisal contingency in the event home appraisal is within $XX of purchase agreement.”
E) Waive the request for home remedies. I always recommend still doing the home inspection, and keeping the right to walk away if a deal-breaker problem is found. However you are agreeing to not “nit pick” small items in the inspection. In multiple bid situations, buyers are often over bidding, then trying to negotiate the price back down with excessive remedy requests. With this clause, you are still doing a home inspection to protect yourself, but servicing notice that you will not be playing games with the inspection.
F) Provide a large earnest money deposit. It gets the sellers attention, and shows you are a serious buyer.
G) Have a strong pre-approval from a lender, with no conditions. The letter should state the address, price, and that the lender has already verified the buyers credit and income.
The highest price does not mean anything, if it never gets to the closing table. Use these strategies to let the buyer know you want their home, and want a smooth and hassle free purchase. In doing so, you can often beat out the competition.