4-STEPS FOR BAY AREA HOME BUYERS TO CREATE WINNING PURCHASE AGREEMENTS

Very few home buyers in the Bay Area seem to understand the important steps to take to prepare a winning package for the Purchase Agreement. This is a package of the purchase proposal, which is provided to the seller for its consideration. After you have hired a realtor with proven negotiating skills, there will be four important steps in the world regarding how their purchase agreement package will be received and ultimately accepted.

It often happens that the buyer’s realtor does not perform the necessary homework before he / she advises his client on the price and terms of their purchase offer. Thus, the result is very similar to throwing a dart into the wall blindfolded and hoping to hit the bull's eye. Here are four steps.

 

Step one - what is most important for the seller?

The buyer's realtor should contact the realtor representing the seller and find out what are the most important conditions that the seller is looking for in the purchase proposal. For example, in today's Bay Area real estate market, we have one of the lowest stocks of houses for sale in history. Thus, the seller often looks for a “rental payment” after completing the escrow of their home in order to give them time to find their next home. This would be important information for the buyer. Another question: “When will the seller want to close the escrow?” Sometimes this happens as soon as possible. Sometimes this is determined by how long the seller has lived in the house. For example, today's capital gains laws state that in order to receive benefits in the amount of $ 250,000 or $ 500,000 in profits from the sale of your home, you must live in the house for at least two years. Thus, the key is to find out what is important for the Seller before making a purchase offer.

Step Two - What is the "right price" at home?

What is the right price for a home? The pricing strategy that some retailers implement in the Gulf area is to evaluate their home at market value, to generate interest, which leads to many offers. Determining the right price for this house is crucial before the purchase offer is built. Here is an example. In North Berkeley, there was a house that our customers identified as the house they wanted to buy. It was priced at $ 899,000. The “right price” for a home, considering comparable sales in the past six months, was $ 1,350,000. Thus, if the “correct price” had not been determined, the buyers would have submitted an offer to buy, which would not have been considered by the seller. This particular home is actually selling for $ 1,425,000.

Step three - is it possible to eliminate any unforeseen circumstances?

Can any unforeseen circumstances of the contract of sale be eliminated in advance? There are three exit doors that allow buyers to exit a sales contract without any financial damage; Inspections; Evaluation; Credit Qualification. The more unforeseen circumstances that can be eliminated when building a sales contract, the more attractive it will be for the seller, especially in situations with several offers. For example, if a seller has completed all the typical checks of his house before he goes on sale, the buyer can remove unforeseen circumstances of the check. If the buyer has enough financial reserves, he can remove the unexpected estimate. Finally, if a buyer starts getting full qualification for his mortgage early enough, he can also remove unexpected credit costs. NOTE

Step Four - Convincing Buyer Letter         

This last step may seem strange to some buyers, but this is important. The buyer must write a letter from the heart, why he wants to be the next owner of the seller’s house. The letter is written directly to the seller. The letter should contain as many details as possible. It should also include photos of the buyer, allowing the seller to get a clear idea of ​​who he is. A buyer’s letter to the seller can make all the difference in the world - a promise. Here is an example. We represented buyers for a beautiful home, which we expected to receive several offers. There were eight sentences on the house. We learned that the offer to purchase our client took the 7th place with the price of eight offers. And the seller accepted the offer of our client. What for? Because the letter, which buyers included in their offer to buy, was so compelling that they wanted to become the next owners of their beautiful home. Sellers wanted them to continue the legacy they created in their home, so they accepted the offer.

These four steps will significantly increase the likelihood of adopting Purchase Agreements for home buyers in the Gulf region. Contact me at any time if you want to talk more about the implementation of these purchase offer strategies with your home purchase.