Email that just went out:
Good afternoon [First Name], Investors and Contractors,
1. Dave Lindahl & 2. Multiple Offers
1. Dave Lindahl will be speaking to us at our meeting in 11 days! in Peabody Tuesday April 16 7-9:00 PM Then Dave has a Two day event Saturday and Sunday April 27 & 28. I believe you’ll be impressed with his latest system!
However if you’ve tried to sign up from the previous links or the Postcard he sent out this week you still must sign up at this link https://m160.infusionsoft.com/
2. Multiple Offers – I’ve been sending out a Newsletter to Realtors and in the latest issue April 2013 there’s an Article on Multiple Bidding Solutions. Our Association seems to have fairly sophisticated members so I’ll share this with you below:
Multiple Bidding Solutions – As an agent in the current market, you may find there is fierce competition in negotiating a property for your client. Markets around the country are reporting that well-priced inventory is scarce, and the signs of a turnaround are upon us. Agents who entered the business in the last few years have been conditioned to play hardball in negotiations, and might find this to be somewhat new territory.
Fortunately, there are some strategies you can use when you find your potential offer competing against others.
While it may be tempting, you shouldn’t focus your negotiations on price alone. The terms and conditions can be much more important to a seller. For the best results, negotiations should be a one-time presentation.
Also, with a hot property, you can try a two-step negotiation:
• Step 1 – Make an offer on terms and conditions. Obtain an agreement on a closing date, with contingencies like home sale and inspections. You may be able to reduce the time frames on these clauses or even remove them from the contract. An excellent strategy is to not only provide a pre-approval letter for your buyer, but also ask the lender to run the buyer through their automated underwriting system. Without sharing the buyer’s personal details, with a pre-approval and the AUS findings, you can demonstrate your buyer is more likely to close than other competing offers.
• Step 2 – Discussing price. Make sure your buyer understands that if they need to raise their offer, you need to calculate that increased offer in terms of additional downpayment, as opposed to the price. For example: a $10,000 price difference with a 5% downpayment only means an additional $500 at closing and a small increase to the monthly payment. However, if you can obtain a seller concession for a rate buy-down, it could keep the payment lower than they would have expected.
Keep a cool head in these negotiations and use every resource you have available to craft the best possible offer for your buyer.
See you soon, Mike Hurney,Franklin American Co, 300 Trade Center, Suite 5650,Woburn, MA 01801
PS The only thing I can add to this strategy is to have a backup property that you’re looking at.