Writing a Compelling Offer
With the real estate market rebounding, making a strong compelling offer to a seller is more important than ever. As real estate swings back to a more balanced marketplace, or in some communities, even toward a seller's market, the details and the manner in which an offer is made can have a significant impact on how a seller responds to it. While there is no way to ensure that a seller will accept a given offer, using knowledge of their situation and the advice of a real estate agent can make offers more compelling and negotiations yield better results.
While home purchases are transactions with large financial implications, the personal element cannot always be removed. Even for buyers who can approach negotiations objectively, they should keep in mind that there is no guarantee the property's sellers can do the same.
Emotionally attached. Buying from a seller who may have a strong attachment to the home despite their plans to move out means letting it go can be difficult for them. In these cases, the seller may be swayed not by the price or financial terms, but rather by the home buyers' attitude toward their new residence. If the current residents of a home are emotionally attached, then the key to closing the deal may be in how the buyers treat it. The perception that they will care for the property may be the missing element needed. Such intangible factors are difficult to account for when discussing home sale negotiations, because they vary so much from case to case and are difficult to predict. Focus on the elements of the home that you really enjoy rather than discussing your plans to change decor, design or landscaping.
Past experience. Home sellers may also be influenced by past experience. If a seller has had a potential deal called off at the last minute, then certainty of a solid offer can be more valuable than money. Real estate agents are often able to help buyers to read the reactions of the home seller and develop a strategy appropriate to the situation.
Their concerns. Another factor in the process influencing home seller is the degree to which they may be preoccupied with other concerns. Moving out of an old home often coincides with other major events, such as settling in to a new job. When that is the case, home sellers are often inclined to make a deal more quickly so they can focus their attention. This may play into buyers' hands and allow them to close a slightly better deal.
Understanding a seller's motivation to sell and developing and presenting a compelling offer is the key to success in any real estate market.