Why You Should Choose Our Offer

Greg Parham from First Alliance Title provided an amazing class with 15 top tips or strategies to help your buyers get under contract. I am working at scheduling another class with Greg and First Alliance Title soon. By the end of the class one acronym kept coming into my brain—K.I.S.S. for the listing agent and the seller! We need to keep it simple and easy for the listing agent and seller. So, how do we do this?

One way is to think strongly about eliminating escalation clauses with your offers. Why? Escalation clauses were easy to manage for the listing agent when they were receiving 3 or 4 offers on a home. But, today they are often receiving 10 or more offers. How do they keep track? Often they can’t keep track. I have had many agents tell me they don’t even look at escalation clauses anymore. In other words if your client offers $500k with an escalation clause to $525k, the listing agent may consider their offer to be just $500k. So, instruct your clients to write their highest and best offer up front.

Next, we need to remember that our #1 goal with our clients is to GET THEM UNDER CONTRACT, it’s not protecting their earnest money. But, today’s market puts our buyers at more risk. How do me mitigate or reduce their risk?
· I think providing your clients with a 1 year home warranty is a great place to start as a home warranty covers so many items that could go wrong. If you offer your clients a home warranty, then their home inspection can be just for bigger items like roof, sewer line, and foundation. Thus, your clients can write a contract stating that they will only object to big inspection items such as the roof, sewer line, and foundation. This makes it simple and easy for the sellers too.
· Second way to keep it simple and easy for the listing agent and the sellers is to provide an Offer Summary with your client’s contract. Tell the listing agent and sellers why they should choose your buyer’s offer over every other offer.
· Third, I will be providing a new document to go with our Pre-Approval Letter called “Why You Should Choose Our Offer” This document will include pertinent and powerful info about the buyers such as credit score range, job history, debt to income ratios, assets, type of work they do if it might help.
· I will also include a section on why I/we will get their loan closed. For example, I will note that my Closing Success Rate is 99.5% over the last 8 years on loans that I issue a pre-approval letter for. I will also highlight other benefits they will receive such as stellar communication from us, no delays at closing, and the fact that I have total control over my client’s loan.

Still money talks. This means our clients must write a very aggressive offer price-wise with a large appraisal gap.