It’s a fact that having the highest price offer doesn’t always guarantee that the seller will choose your offer.
Recently I went to visit clients I sold a home to a year ago and gave them a CMA reflecting the value of their home now. It came up in conversation that they’d heard from the listing agent who sold their property that a year later she is STILL getting grief from an agent whose high-price offer was not the winning bid.
As a REALTOR, our job is to do our best to get these real estate transactions to close. When working with buyers, we use our tools to get an idea of the property’s value and present a range to the buyers. Ultimately the buyer decides the price to offer. A rather high price can be offered to win the bid, but then the hurdle is whether or not the property will appraise for that high amount.
Ultimately, it’s the seller’s option which contract he or she chooses. In this competitive market, there are likely multiple offers on every property. The seller will take into account many things besides price. They will look at the requested closing date and compare it to their preferred timeline. They will look at the type of financing the buyer is pursuing (if you don’t have a pre-qualification letter, don’t even bother to submit an offer). Most sellers will prefer cash over any financing because cash can close faster. Several specialized programs like FHA, VA or USDA may concern a seller because their rules and inspections can be very particular. Then, if the buyer is asking for concessions like closing cost assistance, that will be weighed against the sale price. And, then ultimately there is that “sixth sense” factor as I like to call it. The seller may simply LIKE a particular buyer better than the others.
That’s where I like to make my clients shine. Buyers, give your agent the permission to share your personal story, tug at their heart strings and make it personal. In the scenario mentioned above, I won the seller over by telling them how my client grew up water skiing the nearby lake and how he is looking forward to jet-skiing with his grandchildren there. The sellers had a deep love of the neighborhood, water sports and the lake too. They chose us.
You could even write a personalized letter telling the sellers why you would love to own their home. Better yet, have a child write it.
Good luck in your home shopping endeavors!