All Forum Posts by: Danielle Turcotte

@Danielle Turcotte Here is some guidance for getting your offers accepted in a competitive market

-short closing times

-cash > hard money > conventional financing > FHA/VA etc. financing

-avoid as many contingencies as possible

-walk through the property beforehand with an inspector so you can write in an offer without an inspection period

-provide a reasonable amount of earnest money within a few days of going in contract

-talk with the listing agent and provide evidence to build confidence in the selling side that you are serious and are planning on closing with the terms provided in the initial contract

-be flexible with the choosing of the title company. Don't immediately leave it up to the seller but don't be stubborn about using your choice 

A couple times recently I had the selling agent ask the seller, “what price would you be happy with and be willing to sell it to me for now?”  I looked at the property within a few hours of the listing. The price they responded with was a little over what they were asking but both homes that I bought appraised higher than what we agreed to. I knew my numbers and both of the homes are now rented and performing well. There are tactics used by agents like “give us your highest and best” because we have multiple offers. Sometimes there are multiple offers but all very different and one of them would definitely buy the home as offered. Sometimes this pressures buyers to pay more than they should. Granted agents work for the sellers and they try to get best price, so you can’t blame them. That is why I tried this strategy because it was very fair to the seller and it still worked for me and avoided the ridiculous bidding.

Another property that needed foundation work had my offer and at least one other. The agent came back with the highest and best tactic but I told them that was my best. The seller later took the offer. So although you will lose some properties because others are willing to pay too much, be patient. Maybe when interest rates rise and markets change, the same homes will be back on the market because the numbers didn’t work. It is much better to lose the property to a competitive bid than to lose it to the bank later.

@Danielle Turcotte hi Danielle,

I’m an investor and realtor down in atlanta and have been experiencing the same with my buyers.

We have found success offering over asking with short inspection periods (I.e. 3 days or 5 days if on a Friday) and then clawing back value with seller contributing toward closing. The extra dollars offered, when financed over 30 years equate to minimal increase in monthly payment.

Real example below:

Recently renovated Property was listed for $239K. Multiple offer situation.

We offered $255k with $7k toward closing (less money out of pocket at closing).

Also helps if you have “crystal clear criteria” and can get an offer out within 2 days of it being listed

Cash offers are always strong, because the seller knows that the purchase won't fall through due to financing. Waiving inspections is another strategy, though not recommended unless you have a lot of experience.

Other than that, competing on the MLS listing right now basically comes down to your price.

If it's MLS listed, you are up against the competition. In my area, one is not bidding on a property anymore, they are outbidding the competition. I would suggest concentrating on off market properties. It's you and a prospective seller, one on one.