This week, the Bayside team met with realtor Jeremy Hanson of Coldwell Banker Realty here in Miami. We chatted about the current market conditions and winning deals. With limited inventory and countless stories of all-cash, over-asking offers and appraisal and inspection waivers, securing a deal may seem daunting. However, Jeremy offered some insight into how to be successful at winning deals with financing, and without having to waive contingencies that open the buyer to much more risk. “People are still using financing, and your financed offer can still look strong. It is all about speed, efficiency and having a great team in place to make sure all your bases are covered.”
Jeremy went into more detail about giving the seller more confidence in your offer. His first point was speed, speed, and more speed. “The faster you can contact the agent, see the property and put an offer down, the better your chances of getting an offer accepted are.” This point is also reflected in terms of establishing your team. “In terms of the lending team, if a client and I go and check out a property at 10 am on a Saturday and want to place an offer, we will need a customized pre-approval within minutes, not hours.” Jeremy emphasized other team members who often get overlooked, like your inspection team. “You need to have your inspection company on speed dial and if you know your inspector, you can minimize your inspection window, which is another thing sellers are looking for in this market,” another aspect that integrates the team mentality and speed. “Real estate is a team game. Many people often overlook how many team members it takes to close a deal, or think it is the seller v.s. the buyer or the seller’s agent vs. the buyer’s agent. This is incorrect, we are all on the same team to best serve our customers.”
Another factor in making a strong offer is placing a large earnest money deposit. This shows the seller that you are serious about purchasing the property and have the cash to back it up. “I always recommend putting at least 10% percent down in earnest money and at least 20% of that should be included in your initial deposit.” While it seems like a small detail, this is something that makes your offer just a little bit stronger.
The offer, like many things, is really a sum of all parts matter. If you can make each little piece of the offer just a little bit stronger, your total offer package looks much stronger. Combine that with a strong team to execute the details of that offer and you can put yourself ahead of the pack - even with a financed offer!