As the agent, you need to give good suggestions to your buyer when making an offer. An offer full of contingencies usually is beat out by those that don’t.
One of our agents just emailed how on a contract offer, the buyer was insistent on contingencies, so they lost the house.
We came in at list price.
$5K earnest.
Escalation with $1100 increment up to $11K over-list.
We lost to the competing contract because we retained the VA appraisal contingency and asked the seller to pay for the septic inspection. The other two offers were conventional with no appraisal contingency. On my next offer, my buyer now knows better.
What should have been done?
Usually the appraisal always comes in at value anyway. At worst about $5,000 difference. So drop appraisal contingency. In the event it does not appraise, the buyer just pays that extra in cash at settlement. If the buyer does not have the cash, change the loan to a lower down payment and use that cash. But drop contingencies including nickel and dime things like paying for a septic inspection.
Prospect, write a strong offer, ratify and go to settlement. Perfect.
This has been another exciting “Training in a Minute“.