What are the ten things a buyer and agent need to do to prevail in today’s competitive multiple offer market?
- Study what the most recent comps sold for, including properties that are “pending,” and make an offer higher than the closest comparable property, if you can. However, the highest price doesn’t always prevail. By following the next 9 steps, you may “win” without being the highest offer.
- If the buyer can pay in cash, do that. After, she closes, she can take out a loan if she likes. (A substantial number of transactions in SF over the last year, some estimate as high as 50%, have been all cash transactions.)
- Make the offer as “clean” as possible or with as few contingencies as possible. For example, performing inspections before the offer date (if possible) can eliminate the pesky property inspection contingency.
- Develop a good rapport with the listing agent, if you are the buyer’s agent. Set a nice tone from the beginning that you will be great to work with.
- Develop a good rapport with the listing agent, if you are the buyer. Introduce yourself. Go to the property more than once. Show the listing agent that you are in LOVE with the property.
- Find out what the seller wants – a rentback, a quick close, an extended close, etc.
- The buyer should write a nice letter to the seller giving some background information and telling the seller why she LOVES the property. Believe it or not, sometimes it is the letter that makes the difference, especially in a close contest.
- Put together a nice package for the listing agent. Presenting signed disclosures with the offer shows the listing agent that you will be easy to work with since you have already performed a big part of the job by getting the disclosures reviewed and signed by your client.
- Do something that makes you stand out. Include art work, a CD of Christmas songs that your client singer has recorded, etc. Sometimes you just have to think outside of the box. The CD was an example of something I included that actually helped get my client the property.
- Move quickly; the market is moving fast and you don’t have time to dawdle. Good luck!
