Letters to and from buyers and sellers really work
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byTod G Franklin
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In this competitive market, buyers can send a letter with an offerA formal bid from the home buyer to the home seller to purchase a home…. to gain an advantage. Combined with a solid, well-prepared offer, personalized letters do work to help get the deal. They show interestThe cost you pay to borrow money. It is the payment you make to a lender for the money it has loaned to you. Interest is usually expressed as a percentage of the amount borrowed…. and give confidence to the seller that the buyer loves and desires the home.
So what is this about? I always tell my sellers they should pick the highest offer that will close. There are many factors to consider in the evaluation of an offer. The biggest fear of a seller is a buyers true motives. Are they rushed? Do they want to put the house under contract? Then, decide later if they want to buy it.
Buyers can get a home under contract for a nominal option feeA payment from the buyer to the seller for the unrestricted right to terminate the contract during the Option Period….. Are they feeling they will miss out if they don’t act fast? Sellers want buyers emotionally invested at the time of making an offer, not later. A great real estate transactionApplies to any business dealing. In real estate, it is an instance of exchanging ownership of a property. … has all parties looking for a win-win outcome from the onset.
From contract execution to closingThe process of completing a financial transaction. For mortgage loans, the process of signing mortgage documents, disbursing funds, and, if applicable, transferring ownership of the property. In some jurisdictions, closing is referred to as “escrow,” a process by which a buyer and seller deliver legal documents to a third party who completes the transaction in accordance with their instructions. See…, negotiating power of the buyer increases while negotiating power of the seller declines. The option phase is an exclusive right of first refusalA provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others….. It is risk-free for the buyer but not the seller. If a contract terminates before closing, the seller loses critical time.
Another big issue is financing risk. An offer can come in above appraised value. Sellers want a buyer committed to close more so than the highest offer. Letters help reinforce commitment. Of course, earnest money intends to protect a seller. In reality, the benefit of earnest money in protecting a seller is nominal.
Agents help the seller evaluate risk. They speak to the buyers’ agent and lender to verify sincerity and details. Good seller due-diligence centers around determining the buyer are “in love with home”. Has no hidden agenda, and wants the deal to go through.
Interviewing a buyer agentRefers to the agent and broker solely representing the buyer of the property. The buyer agent, the cooperating broker, the other broker, the buyer broker, are terms used interchangeably. In most context, it is real estate professional receiving a commission for representing the best interest of the buyer. … and lenderThe lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing…. is a critical piece of this evaluation. I call it looking them straight in the eye over the phone. I want to hear them stake their reputation that what they say is true. No agent or seller can review an offer and predict the future.
Agents and lenders respect the needs of both parties. They have a long-term view that ethical behavior is a large part of the job and want to be a success. The good ones are transparent in their dealings and don’t hide risk factors. A letter to the seller demonstrates sincere interest.Photo by sflovestoryFor a letter to help it is genuine and personalized for the home and situation. It is easy to see through boilerplate letters that apply to any home.
The best letters state why this home is best for them. In reverse, I have seen a letter from a seller to a buyer emphasizing benefits. Advising the buyer in a heartfelt way they should give consideration to accepting a counter. This strategy doesn’t apply to a multi-offer situation. It closed the deal with this home.
Letters don’t take a lot of time and work like therapy. If you write it down you have thought it through and are likely to make a better decision for all involved.
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In this competitive market, buyers can send a letter with an offerA formal bid from the home buyer to the home seller to purchase a home…. to gain an advantage. Combined with a solid, well-prepared offer, personalized letters do work to help get the deal. They show interestThe cost you pay to borrow money. It is the payment you make to a lender for the money it has loaned to you. Interest is usually expressed as a percentage of the amount borrowed…. and give confidence to the seller that the buyer loves and desires the home. 