- Motivation. Know the buyer's motivation. One that is relocating for a job, is stronger than a buyer buying a second home. The family out growing their condominium is stronger than the one who is renting and thinks it is a good time to own.
- Proof of Funds. Before an offer is accepted, the buyers should be required to submit a recent bank statement showing that they do indeed have the money for the deposits and closing costs.
- Higher Offer Trap. At this time, many sellers are receiving multiple offers. Some buyers will offer above the fair market value in order to get their offer accepted, knowing they will renegotiate the price if the appraisal comes in lower. If the seller does not want to renegotiate the price, they still have to share the appraisal with the next buyer. So make sure that you have strong comparable home sales and the strongest, most motivated buyer with a fair price or money to renegotiate with.
So the moral of the story is look a little further than the price and terms on the purchase agreement. Make sure the buyer can indeed fullfill their offer so no one gets burned.
ABR, CRS, CNE, SFR, ePro, GRI
Keller Williams Realty