Winning in a Multiple Offers Situation with Strategic Financing: A Realtor’s Guide
Standing Out in a Competitive Market: How Loan Strategy Can Make All the Difference
In a fast-paced real estate market, the competition can be fierce, especially in multiple offer situations. As a savvy realtor, understanding how to strategically position your clients’ offers can be the key to success. Let’s delve into a real-life example that showcases how a strategic loan strategy helped clients secure their dream home, leaving both buyers and sellers thrilled.
The Dream Home Discovery: A Perfect Fit in Westminster
Imagine your clients falling for a beautiful home listed at $450,000 in a desirable area of Westminster. This home seemed tailor-made for them – boasting ideal amenities, the right size, and situated within a desirable school district. The emotional connection was strong, and they envisioned building their lives there for years to come. This isn’t uncommon, but I’m sharing a real story that happened, right around the corner from my house – for my clients!
Anticipating a Competitive Challenge
Their realtor recognized the potential challenges lying ahead. They learned that at least eight other offers are anticipated that may even include larger down payments or even cash offers. This posed a significant hurdle for our clients who needed financing to make their dream a reality.
Uncovering the Winning Loan Strategy
Armed with some loan strategy and research on behalf of the Realtor, we became confident that the property’s true value would not dip below $400,000, regardless of the appraiser’s choice of comparables. This allowed me to approach the client with a strategy to compete.
Educating Your Buyers for Success
I met with the clients showing them a total cost analysis that showed various scenarios based on how much the property ended up appraising for, and exactly what it would cost them if the value did go as low as $400,000, and how even then, they wouldn’t need to contribute an extra penny towards closing costs. By financing the difference between the appraised value and the offer price, I showed them the exact potential financial implications, and they felt it was worth it to them regardless.
Crafting the Irresistible Offer
With the confidence of the clients, the realtor wrote a compelling offer at $475,000 with a solid 20% down payment and, notably, without an appraisal contingency. This communicated to the listing agent that the clients were serious contenders, and willing to guarentee the Sellers’ net proceeds, which no other offer included.
Winning Over Sellers with Confidence
This strategic approach raised eyebrows and garnered attention. The listing agent reached out, intrigued by the clients’ offer and the unique financial stance. They inquired about the secret of how they could write with no appraisal contingency if they only had 20% down.
I detailed the intricacies of the financing strategy, underlining our clients’ unwavering commitment to finance the difference in case of an under-appraisal.
The listing agent was still a little baffled, asking again, how can you guarentee they will close? I turned it around on them asking if they believed the property would appraise for a minimum of $400,000 – a question to which the answer was a resounding “all day long” – which was why the listing agent had listed it at $450,000 to begin with. I reiterated, the buyers are prepared to finance an appraisal gap all the way down to $400,000, which we all agree it could not appraise under.
The Decision: A Win-Win Scenario
The sellers gladly accepted our clients’ offer, assured by the commitment of the buyers to seek a solution to guarentee their offer price. It was the only offer that guaranteed to cover the gap.
Surpassing Expectations
In a delightful twist, the property’s actually appraised for $525,000 –
In the end, our clients not only secured their dream home but also demonstrated the power of a well-crafted loan strategy in a highly competitive real estate landscape. By understanding the market, strategizing financing, and exuding confidence, we created a winning scenario that wowed both buyers and sellers, leaving everyone thrilled.
*As a realtor, collaborating on such strategic approaches can elevate your expertise and reputation to your clients and other agents, making you the go-to professional for clients seeking success in competitive markets.*
