The real estate market in the DFW area has never been hotter… for example, homes in the 200-300K range have been selling in record time, often on the first day (or within hours!) they hit the market. Sellers are experiencing more showings than ever, and are having to review up to 25-30 offers on their homes!!
But believe it or not, a Seller’s motivation MAY be something other than getting the highest selling price! Some things to consider are:
Time. A Seller may need more of it in the home after the sale; in which case you can offer a lease back. Or maybe they need LESS time? A cash deal with a quick close is sure to win over another offer that involves financing and/or a long option period.
Which leads me to the “dreaded fear” of a contract falling apart due to financing! Unfortunately, this happens more than you would think! A Seller may accept what they think to be a great offer… maybe even a higher than asking price offer… but in the end the Buyer just couldn’t get their financing together, and the deal falls through. This is a waste of precious time, AND money in the long run. So be sure to put your BEST offer forward initially: have a proof of funds or pre-approval letter from your lender ready, offer a large down payment, and an earnest money deposit that shows Sellers you are a serious buyer… like 3-5%.
My final consideration is to pay some of the Seller’s closing costs! Sound crazy? It's not… the end result is more money in the Seller’s pocket without raising the price of the home; which could cause the property not to appraise! This just might be the tipping point for a Seller to accept your offer over another.
Bottom line: in this market, submit your BEST possible offer the FIRST time! If you can live with the terms, and it is more convenient for the Seller, the better chance you will have of getting it accepted!
Remember, you can always contact me, Linda Larson-Porter, for any of your questions!
Submitting an offer on a home without ever setting foot inside is not new… and now with the COVID-19 Pandemic, it has become more common place for buyers who simply don't want to take any risks. But is this a smart thing to do?