Ask A Real Estate Agent
Buyers, are you having a hard time getting your offer accepted?
I know, We’re no longer in the unicorn COVID market. However, within the next 12 months, buyers are going to have a problem. In this month’s column, I’m going to give you surefire tips on getting your offer accepted right now.
The 7% interest rate is affecting both buyers and sellers, leading to a potentially different unicorn market in the coming 12 months. Buyers are overpaying by $50,000 to $100,000, with no inspections and multiple offers into the dozens. The last quarter of 2023 was a neutral market with few buyers, sellers, and inventory.
The decrease in interest rates is expected to significantly impact the real estate market, particularly for buyers. This is because the decrease in interest rates does not necessarily lead to an increase in house inventory. Instead, more competition will result in a dwindling inventory. To succeed, buyers must understand how to make their offers competitive and accept them.
1. Get pre-approved. Buying a house involves understanding the difference between pre-approved and pre-qualified offers. Pre-qualified refers to having your debt, income, and credit score assessed by a lender or bank. This information is then sent to your realtor, who uses this information to make an offer. Pre-approved means the lender already knows your credit and debt-to-income ratio, income, and credit history.
When a buyer submits an offer, one may be cash, but the other may be pre-qualified. It is crucial to be pre-approved to secure a loan. Listing agents, like those working with builders and developers, understand the difference between pre-qualified and pre-approved. When receiving offers, they rank them based on their importance. If a pre-qualified offer is the highest but pre-qualified, the listing agent may ask the agent to get the buyer pre-approved. However, this is not the norm.
2. Get creative. Consider offering to pay for all or part of your realtor’s commission. This approach can help you present a more appealing and competitive offer to the listing agent. In the United States, the seller pays both sides of the commission, including the listing and the buyer. As a buyer, you can offer to pay the buyer agent’s commission, which can be negotiated with a lower commission or through a friend or family member. Overall, buyers want to show different options for presenting the listing agent, not just the highest offer.
3. Use humor. In a multiple-offer situation, the buyer is a product to be marketed to the seller. Place humor in the details, such as with the price and closing date, add a fun twist to make the listing agent and seller laugh. Get them to talk about the buyer. For example, offer the seller a lifetime supply of Margaritas or an open invitation for all-youcan- eat Taco Tuesday for the rest of the year. This makes the buyer stand out and helped my buyer close the deal.
Tell your agent to include a humorous subject line in your offer, such as “Winning offer from Favorite Realtor” or “A Winning Offer from Best Buyers.” This approach helps market your offer to be the best and highest, while also giving the listing agent a good chuckle. It will also reinforce it every time the email chain is responded to throughout the transaction.
4. Summarize the negotiating points in a lengthy contract, extracting the hot points, with the buyer’s offer. In the body of the email, include the price, closing date, hand money, any contingencies, and seller assistance. Price is always the number one negotiating point, and in Pittsburgh, the most important part is seller assist. This method has been used by people for years and has become a favorite among them.
If you have any questions about, should you put an offer in or could you put an offer in on a home while you still own a home, whether it’s on the market or not on the market, feel free to contact me by email or directly on my cell. Give me a call/text at 412901-7522 or DM me on Instagram @brian. sellspittsburgh. Looking for more information about buying and selling in Pittsburgh? Visit my YouTube channel for more tips and insights www.livinginpittsburgh.us.