National Agents
1) Prices seem to have risen in the last month or so, should we come in at asking price or below asking ? If on the market less than 7 days, come in at list price with as few contingencies as possible. And consider using the escalation addendum which outbids anyone going a little over list price. If on the market 20 or 30 days you still come in at list price with maybe a seller subsidy. Andy will know the max seller subsidy can be.
What about all cash offers ? Same as above, but since financing is a contingency, you won’t have that and therefore a better chance at winning.
2) Do you recommend waiving the inspection contingency if the property is relatively new ? Yes. But if the client insists, there are two types of inspections to choose from. 1) Inspection where any issues, contract becomes negotiable on how much buyer wants seller to pay for. 2) Void only. This is an inspection where the buyer just wants to know what he is getting into, but he will not ask the seller to fix anything. Buyer can only void the contract if he finds something incredible.
3) Counter offers vs escalation addendums. Can you give a pointer when it’s more valuable to put in an escalation addendum vs negotiating via counter offers ?
An escalation addendum outbids other offers by an increment amount of maybe $2,000 over any others up to $20,000 over list. It’s up to the buyer.
Counter offers usually are when we only have one contract on the table and the seller may cross off home inspection. Then the buyer must agree or the contract is void.
4) Is there any value in reaching out to the listing agent to try to get a rapport with that agent in hopes of helping out chances ? There is no value there unless you want to say your clients are newly weds and really love the house. Or something like that. But bottom line the price and terms are going to dictate.
However you always want to be nice to the opposing agent. You two should be working together to get the buyer and seller to agree.
I had the buyer agent one time tell me harshly that she is going to fight for her client and I was out of line. So I recommended to my client to take the other offer. Friendly works. Mean doesn’t.
I hope you are all prospecting for clients by asking everyone you know if they know anyone looking to buy or sell Real Estate? Rates are a little lower and this is the perfect time. ( Don’t miss this Spring market)
This has been another exciting “Training in a Minute”.
Keith