The Buying Process: The Offer - Buyer Spring Training Seminar.

So we’ve found “THE ONE”

Now it is time to make an offer, but before we do, there are few things you need to know.

Historically, there are two ways a property is listed:

On Offer-Deadline

Typically employed when there is a high demand. The property is listed for a cheaper price than its actual value with the purpose of selling the listing for a higher price with a “blind auction.”
A date and time are set to make the offer. However, some buyers may bring a “Bully” or Pre-Emptive Offer. This means that a prospective buyer can present their offer before the time established and hope that it will be approved.
Remember, the Best practice is to be firm (no conditions).

No Offer-Deadline

Typically employed when the demand is less or equal to the market offer, which means there are more sellers than prospective buyers for a specific market.
Offers can be made at any time and a straight negotiation is implied.

Our Secrets to win

As mentioned in a previous post, you need your certified deposit cheque ready (5% or more). This will give you a higher chance of winning since you have the deposit in hand versus the seller waiting for 24 hours for the deposit to be prepared. Remember, no deposit, no deal for the seller!
A hand-written letter. At the end of the day, it’s all about the connections and the feelings we create in the heart of whoever is in front of us. Build that connection with the seller and that will give you an extra chance to win.
No conditions. We all know that sellers want to sell their property as quickly as possible, conditions just make the process longer and give the buyer an opportunity to back out of the deal.
Strong closing date. What the seller prefers.
Realistic price expectations. Everyone is looking for a deal, the buyer, and on the other side, the seller. Setting realistic price expectations will only help both sides win.

“LET’S JUST TRY, WE HAVE NOTHING TO LOSE! RIGHT?”

WRONG.

You become part of the “problem!” Let me explain why. The presence of too many “fake” buyers actually raises prices. Indeed, buyers who are really interested in the property will make a higher offer believing that there is a higher demand than the actual one. This has an effect not only on that single property but on the entire market. If a condo was sold for 900K dollars due to “fake buyers”, the same floorplan condo on the same floor that was intended to be sold for the actual value of 800K dollars will see its price rising to the new value of 900K.

So, how to get it right?

Be prepared.
Review the CMA (Subjective vs. Objective Value).
Do your due diligence & run your numbers beforehand.
Rely on and trust your Agents’ advice – you hired them, trust them!
Don’t go beyond your means and ensure you are always in line with your own expectations.
Get the key offer items ready-to-go.
Go in to WIN and not kind-of WIN.

Other Seminar Notes:

2018 Market Update & Analysis

The Buying Process: Financing

The Buying Process: Showings

The Buying Process: Post-Purchase