We are in the peak of the 2016 real estate season. Buyers are getting out bid and sellers are sometimes overwhelmed with the multiple great offers they have to decide on.
As long as we are in a multiple offer market there will be one winner and many disappointed losers for every listing…. So how do we submit the best offer?
Other than price, what matters to most sellers?
Timing – look at date flexibility, find out what the sellers need and deliver those dates. Consul with your mortgage professional to ensure they dates you select are actually doable on his/her end.
Down Payment Size – The greater the down payment, the more attractive the offer! I think that goes without saying. Offers with extremely low/ zero down payment, usually have a better chance in the winter that in the summer.
Cash – Cash is King! Pay cash if you can, you can finance the property at a later date. This is why investors are cleaning up shop in Boston.
Speed –Most agents will not show you property without first obtaining a copy of your pre-approval. The process is not difficult but it does require gathering a lot of documents.
What about contingencies?
Financing – I am against waiving a mortgage contingency because I think you have to protect your client at all costs. You never know what could happen or be found and you have no just cause to break the contract without financial penalty. This is not the same as paying cash – what it means is that buyer’s cannot get the deposit back if denied the loan. Buyers with complicated self-employment income or other unusual financial circumstances need to be cautious when considering waiving their mortgage contingency.
Inspections – Some people remove the inspection contingency and some people have the inspection at or even before they make an offer. We have seen other offers accepted with the condition that they would have the inspection right away, but that the results of that inspection could not be used to cancel the contract on the house or to renegotiate the agreed upon price. Some buyers conduct an inspection and specify a dollar amount above which, the seller would have to repair anything above that value.
Our agents are well versed in negotiations and understanding the best offer terms given the specific market season.submitting significantly below asking price in the summer is a poor choice.
Call us today: 617.297.8641 to learn more!