On the laddering up strategy, most people can't even think in five or six figures, meaning they don't really get the difference between 510k & 520k, especially when it's amortized over 30 years. It'd probably be more helpful to have an amortization schedule in a spreadsheet that automatically updates the payment at different prices. I don't know if I can't afford 520k, but I can start to think about a 2,220 vs. 2,260 monthly payment against my monthly income. I routinely put together amortization schedules for my business clients considering financing options. It's always the best way to help them budget the true cost of financing.
I always try to call the listing agent and get as much information about what the seller wants as possible. Often times they don’t answer. I love the idea of texting them a video asking the question. A great suggestion TF.
Exactly my point where the listing agent is hired to only market the property, not decide its destiny. The seller and market will decide that. It's your listing, not your house. When a listing agent ignores calls, only wants texts, no questions asked, selects responses, one can conclude the seller is cheated big time and the benefit is all for the agent. This entire profession and industry needs revamping.
This is full of potential FAIR HOUSING VIOLATIONS!! DO NOT write letters, send photos, or videos that could put the seller in a position of making a decision based on a bias that could be a protected class.
Make a list of all the things that count as bias, and make sure your letter is sterile of them. For example I'm pretty sure it's not a matter of fair housing if somebody has a dog or not. Edit, also wouldn't all the risk land on the seller. They're willing to take that risk I don't see why you would hold back.
Okay I googled all the categories to make sure I didn't miss any of them, cut and pasted: race, color, religion, sexual orientation, nationality, disability, or family status. When you write your letter go through and edit it and make sure you don't allude to any of those categories, and then has nothing to do with the fair housing law. You're not trying to convince them to sell to you because you belong to a certain religion, the point is to make a human connection so they see you as something more than just a number. So for example you could talk about how the backyard would be perfect for your dogs, you can talk about what you loved about the house, ECT. You've just got to do a read through to make sure you're not accidentally showing what your gender or family status etc is.
Our market in Charlotte just like this. We have used 2 of the strategies here, adding a video to accompany the letter sounds great. Possibly offering to add value to the seller by paying the taxes, closing cost etc is new and genius!!
We have a formal "escalation clause " that will allow the buyer to bid in increments up to a ceiling price BUT with proof from the selling agent that there was another bid.
Yup. And remember the escalation clause also has a cap. Consider also if EVERYONE. Says “plus $1000” ... consider making it an eye catching # like $2500
I inform my buyers that every seller is in a different place in life, and that typically determines the outcomes. Every home on the market isn't due to a happy family upgrading! There is no one size fits all, however, net is the gold standard. Try and contact the listing agent to do some recon on the seller. I've closed most of my transactions on the phone with the other agent! Why offer to rent the house back to the seller if that doesn't meet their needs? As an agent, we should already be aware of our buyer's position in order to guide them effectively in structuring an offer. In this market it's tough. Having well qualified clients increases your chances of securing a home for them. Tom's ideas may work on the perfect seller, but at the end of the day the seller wants to put more money in their pockets.
Loved this Tom, our market here in the Sierras of CA is crazy right now, and most of our agents are very willing to discuss seller situations, which I've found to be THE Best way to find the WIN-WIN. With that knowledge, I find having frank conversations going in with the buyers, and sellers alike, preparing them for the negotiation process and finding their limits has helped get offers accepted and the deals closed.
One strategy I'm going to start using (I just found this out) is where it says "other terms" on the purchase offer, I put: "buyer to pay $1000 above every other offer up to X amount" Sounds like it could work. ( :
It’s an escalation clause. If you haven’t already you may want to add that the “seller must provide proof of a bona fide offer approved by buyer” that way they can’t just accept your top dollar offer without showing there was actually another offer.
How about find a home that suits your own family's needs. Make sure that the home is at a realistic affordable price for the amount of income you make. Find an agent that gets things done and works for you. Communication is key. Always communicate. Don't be afraid to say what you're thinking and with that, listen to what they are thinking. Find a mortgage lender that you feel is in that same ballpark. Make sure they work for you. And absolutely make sure that both the lender and agent communicate as well. Now, about getting your offer accepted... ..If say hypothetically, that there are already 2 offers. And you love the home, you need it, your family wants it, the home absolutely suits your needs... be competitive, and come in with a bigger offer, or pay such and such over the highest offer. ... In my very own particular situation, I used my VA Home Loan, and found a house with zero offers that was in the realm of what I can realistically afford. I made my offer of what the seller's were asking for. And to include that they pay such and such towards closing costs. And I sent them a 'letter'. A letter saying thank you for the opportunity to make an offer on your home... Yada yada yada... But I made it short and sweet, yet relatable. My family was the first offer. And by last Saturday the seller's had gotten 4 other offers. The seller's chose us and now we're going through the closing process. The seller's told our agent how much they liked our letter and was the biggest reason why they chose our family to sell to. ♥️ ...what to take away... Write a letter to the home seller's on top of the offer you make. To set you apart from the incoming crowd.
Make the entire downpayment the EMD. It will get the sellers attention for sure. We had one sale in our market, a $2 million sale. Buyer was all cash. The EMD? $2 million. Yeah, they won
All you have to do is scrub any indication of : race, color, religion, sexual orientation, nationality, disability, or family status. Honestly if America wants to enforce this they need to remove you being able to see the buyer's name in the offer. You can already tell family status to some extent as well as race just based on names.
Hey Tom how do you handle the object from a buyer that needs to sell their home first that they want to buy a home first but tge houses they like are being bought over asking cash offers? I tried a few different approaches but any feedback would be fantastic.
I disagree with sending letters and photos of the families. That’s opening up a very ugly can of worms and WE KNOW these results VARY negatively based on things outside of the buyers control......like where they were born, the color of their skin, family makeup.....
This is easy. Say what you love about the house and nothing about you. This is no different from a job interview response to why you want the job. It's value to the company NOT the value to you.
Maybe the best strategy is emailing the Highest and Best offers directly to the seller and bypassing the listing agent. Let the seller decide what is the best offer for them, not the listing agent. Level the playing field for everyone and bring transparency to "representing the best interest of my client."
@@TomFerry The agent's job is to bring in offers, there should be no need to be appealing to another agent as if they own the house and are in charge of making the financial decision. Sellers themselves are not aware of how much control agents have over their home, especially in this market. Sellers are represented fairly only when they directly receive the H&B offers themselves. The rest is mega manipulation.
On the laddering up strategy, most people can't even think in five or six figures, meaning they don't really get the difference between 510k & 520k, especially when it's amortized over 30 years. It'd probably be more helpful to have an amortization schedule in a spreadsheet that automatically updates the payment at different prices. I don't know if I can't afford 520k, but I can start to think about a 2,220 vs. 2,260 monthly payment against my monthly income. I routinely put together amortization schedules for my business clients considering financing options. It's always the best way to help them budget the true cost of financing.
Oooh. Love that! Another great approach!
I always try to call the listing agent and get as much information about what the seller wants as possible. Often times they don’t answer. I love the idea of texting them a video asking the question. A great suggestion TF.
Exactly my point where the listing agent is hired to only market the property, not decide its destiny. The seller and market will decide that. It's your listing, not your house. When a listing agent ignores calls, only wants texts, no questions asked, selects responses, one can conclude the seller is cheated big time and the benefit is all for the agent. This entire profession and industry needs revamping.
This is full of potential FAIR HOUSING VIOLATIONS!! DO NOT write letters, send photos, or videos that could put the seller in a position of making a decision based on a bias that could be a protected class.
I fully agree Kyle! I asked my agent about a letter about myself. He said NO WAY, BIAS! I see his and your point very clearly.
Make a list of all the things that count as bias, and make sure your letter is sterile of them. For example I'm pretty sure it's not a matter of fair housing if somebody has a dog or not. Edit, also wouldn't all the risk land on the seller. They're willing to take that risk I don't see why you would hold back.
Okay I googled all the categories to make sure I didn't miss any of them, cut and pasted: race, color, religion, sexual orientation, nationality, disability, or family status. When you write your letter go through and edit it and make sure you don't allude to any of those categories, and then has nothing to do with the fair housing law. You're not trying to convince them to sell to you because you belong to a certain religion, the point is to make a human connection so they see you as something more than just a number. So for example you could talk about how the backyard would be perfect for your dogs, you can talk about what you loved about the house, ECT. You've just got to do a read through to make sure you're not accidentally showing what your gender or family status etc is.
Our market in Charlotte just like this. We have used 2 of the strategies here, adding a video to accompany the letter sounds great. Possibly offering to add value to the seller by paying the taxes, closing cost etc is new and genius!!
5% or even higher EMDs are a winner 🏆
We have a formal "escalation clause " that will allow the buyer to bid in increments up to a ceiling price BUT with proof from the selling agent that there was another bid.
Yup. And remember the escalation clause also has a cap. Consider also if EVERYONE. Says “plus $1000” ... consider making it an eye catching # like $2500
I inform my buyers that every seller is in a different place in life, and that typically determines the outcomes. Every home on the market isn't due to a happy family upgrading! There is no one size fits all, however, net is the gold standard. Try and contact the listing agent to do some recon on the seller. I've closed most of my transactions on the phone with the other agent! Why offer to rent the house back to the seller if that doesn't meet their needs? As an agent, we should already be aware of our buyer's position in order to guide them effectively in structuring an offer. In this market it's tough. Having well qualified clients increases your chances of securing a home for them. Tom's ideas may work on the perfect seller, but at the end of the day the seller wants to put more money in their pockets.
Just giving you more options.
@@TomFerry don't get me wrong my friend, the more ideas/options the better! Thanks for your input.
Loved this Tom, our market here in the Sierras of CA is crazy right now, and most of our agents are very willing to discuss seller situations, which I've found to be THE Best way to find the WIN-WIN. With that knowledge, I find having frank conversations going in with the buyers, and sellers alike, preparing them for the negotiation process and finding their limits has helped get offers accepted and the deals closed.
One strategy I'm going to start using (I just found this out) is where it says "other terms" on the purchase offer, I put: "buyer to pay $1000 above every other offer up to X amount" Sounds like it could work. ( :
It’s an escalation clause. If you haven’t already you may want to add that the “seller must provide proof of a bona fide offer approved by buyer” that way they can’t just accept your top dollar offer without showing there was actually another offer.
Spoken like a true veteran.
Great content Tom! Incredible insight 👏🏻
How about find a home that suits your own family's needs.
Make sure that the home is at a realistic affordable price for the amount of income you make.
Find an agent that gets things done and works for you. Communication is key. Always communicate. Don't be afraid to say what you're thinking and with that, listen to what they are thinking.
Find a mortgage lender that you feel is in that same ballpark. Make sure they work for you. And absolutely make sure that both the lender and agent communicate as well.
Now, about getting your offer accepted...
..If say hypothetically, that there are already 2 offers. And you love the home, you need it, your family wants it, the home absolutely suits your needs... be competitive, and come in with a bigger offer, or pay such and such over the highest offer.
... In my very own particular situation, I used my VA Home Loan, and found a house with zero offers that was in the realm of what I can realistically afford. I made my offer of what the seller's were asking for. And to include that they pay such and such towards closing costs. And I sent them a 'letter'. A letter saying thank you for the opportunity to make an offer on your home... Yada yada yada... But I made it short and sweet, yet relatable.
My family was the first offer. And by last Saturday the seller's had gotten 4 other offers. The seller's chose us and now we're going through the closing process. The seller's told our agent how much they liked our letter and was the biggest reason why they chose our family to sell to. ♥️
...what to take away... Write a letter to the home seller's on top of the offer you make. To set you apart from the incoming crowd.
Make the entire downpayment the EMD. It will get the sellers attention for sure. We had one sale in our market, a $2 million sale. Buyer was all cash. The EMD? $2 million. Yeah, they won
"Love letters" are a fair housing NO-NO! All of the other tips are super helpful though.
All you have to do is scrub any indication of : race, color, religion, sexual orientation, nationality, disability, or family status.
Honestly if America wants to enforce this they need to remove you being able to see the buyer's name in the offer. You can already tell family status to some extent as well as race just based on names.
Thank you for great video!
Hey Tom how do you handle the object from a buyer that needs to sell their home first that they want to buy a home first but tge houses they like are being bought over asking cash offers? I tried a few different approaches but any feedback would be fantastic.
I would accept a "sell my house" contingency only if it's already in escrow and all contingencies are satisfied already.
Love it. Thanks Tom.
What a great video. Number two has got me thinking on my next offer. Took a lot of way with number two in this video. Good stuff. Thanks Tom.
What are some tips and tricks to get your offer accepted?
I disagree with sending letters and photos of the families. That’s opening up a very ugly can of worms and WE KNOW these results VARY negatively based on things outside of the buyers control......like where they were born, the color of their skin, family makeup.....
I AGREE!
Agreed. I just listed my house with “No buyer letters” in the MLS.
This is easy. Say what you love about the house and nothing about you. This is no different from a job interview response to why you want the job. It's value to the company NOT the value to you.
We need to be careful about fair housing laws.
make a video? how about start a youtube channel for the seller ? 🤣😂🤣
Maybe the best strategy is emailing the Highest and Best offers directly to the seller and bypassing the listing agent. Let the seller decide what is the best offer for them, not the listing agent. Level the playing field for everyone and bring transparency to "representing the best interest of my client."
Be carful there. Better agent to agent relationships are and always will be a key factor in success.
That's borderline unethical. Would you like it if you were the listing agent??
You'd be fine with other agents going over your head with your listings?
@@yvonnekhuang Oh really, the offers are for the seller, not the listing agent. The seller is the owner, not the agent.
@@TomFerry The agent's job is to bring in offers, there should be no need to be appealing to another agent as if they own the house and are in charge of making the financial decision. Sellers themselves are not aware of how much control agents have over their home, especially in this market. Sellers are represented fairly only when they directly receive the H&B offers themselves. The rest is mega manipulation.