Want to know the secret to getting your Real Estate offer accepted? Lack of Inventory frustrates some potential buyers.

Written by Michael A. Foote, CMB on . Posted in direct lender, Lending, mortgage banker, mortgage broker, mortgage finance, purchase loan, Real Estate

home-value-photo-1I read all day long. Working, researching, learning, creating ideas and developing game plans from that reading.

I’ve come to a conclusion today.

The surest way to get your offer accepted, is to go to the listing agent and have them represent you too. Yes, I know that’s crazy. How can an agent be completely unbiased and neutral while still providing you the protection you need when he is representing the seller too?  The short answer they can.  And what protections are we talking about? Laws, Compliance, Disclosure. A Realtor most likely won’t try to pull the wool over your eyes anymore, as there are VERY punitive actions if they do. And if you read your disclosures and research your property you’ll be fine.

The market is totally digital now.  Aside from actually walking through a property, everything is mostly online.

Realtors spend the VAST majority of time looking for listings. They typically don’t look for Buyers and furthermore don’t prefer to work with Buyers as the time spent with a Buyer is usually substantially higher than working with a Seller. And in a tight market, it is much better to have a listing rather than buyers if your the Realtor. Although they like to have both of course.

So think about it. There are multiple offers on each property. The listing agent has to look at them all and determine which are real, which are well qualified, which are cash and/or financing, which are too low, and which are too high with financing… and more importantly is the offer from HIS/HER Buyer is the mix.  And remember the Listing agent in theory is not allowed to tell other prospective buyers what the other offers are at price and concessions wise.

All offers are required to be presented to the Seller. That is the truth. Are they? Who really knows. Let’s assume all offers are being presented to the seller. If you were the Listing Agent and you have to present all the offers including his/her own, whose offer do you think gets pushed and sold hardest? I mean we are talking almost double the commission in this scenario.

To add on to this further, if you are financing your property? You should try to use the Realtors Lender as well. The Listing Agent knows his/her Lender. They work together, they close deals together, and more importantly they KNOW and BELIEVE what their Loan Officer says about a Buyer. And TRUST that their Lender will make sure the loan closes. And ultimately, the Realtor wants to close the deal and get paid. Realtors and Lenders don’t get paid a hourly rate usually, they are paid 100% commission.

So if you LOVE a property and aren’t being represented by a Realtor already… I highly recommend you contact the listing agent, get pre-qualified by their Loan Officer and submit your offer as soon as possible. I think you’ll be happy you did.  

In my opinion this theory only works for markets that are highly desirable and active with low inventory where multiple offers are the norm.

Michael Foote, CMB

Certified Mortgage Banker

www.MichaelFoote.com

Licensed Real Estate Broker #01149645, NMLS 235435 & 1059372