People often ask me why some offers get accepted and others don’t. Well, today we’re talking about how to win, how to get ratified and beat out your competition.
In the end, this is all about how the seller sees things. They’re trying to decide between who is going to pay them the most money and who is going to be the safest. The money is easy to figure out. You simply take the highest bidder and you can stack contracts in order from highest to lowest. But what does this seller see as safe? It’s much more complicated. You see, the seller’s probably planning on using that money from the sale of their home to buy something else. So if it doesn’t close as planned, they won’t get to buy their new home.
Here are the top three things to consider when writing your contract.
The first is speed to close. Of all the offers that are on the table, who can actually settle faster than the next? If you can close in 15 to 20 days and every other contract needs 30-45, you can get the seller their money faster and their stress is alleviated.
Number two is contingencies, also known as “only if” clauses. So you’re telling the seller, I want to buy your house but only if my financing is good or only if the home appraises. If things don’t work out, that contract can be canceled without any risk to the buyer.
The most common contingencies are home inspections, appraisals and financing. Now sometimes it’s not only the fact that you have them but how long it takes to complete them. If you can clear your contingencies in 5-10 days and everyone else needs 14-21, you can stand out. Remember, a contingency means you, the buyer, have a possible way to back out.
And number three, the factor that most people might find surprising, is your team. Who is helping you fulfill that contract. While your offer shows your willingness and desire to buy that home, the team you have shows your ability to perform and actually close the deal.
Real estate is a business of relationships. It’s not just me, your loan officer, who needs to have a reputation of closing on time. There’s your lender’s appraiser. Do they know and understand the local market? The real estate agent. Do they have a good reputation among other agents and a reputation of getting things done? Your team needs to be made up of people who understand all these factors we’ve discussed here, which is why I surround myself, and you, with people that understand.
Washington, DC has been one of the hottest housing markets in the country these past few years. I can tell you with great certainty that our borrowers win more as a direct result of how we structure the purchase contract. If you are thinking of buying a home, please schedule a consultation so we can help you win!