Money Isn't Everything

There are lots of things to think about when you decide to make an offer on a house. Price is one, but only one, consideration. There can be factors that are extremely important to the Seller, things that in their own way can be as important as price. There are a number of contingencies in the typical

When I am acting as a Buyer's Agent, I always phone the Listing Agent and ask questions. Sometimes I get useful information, sometimes I don't. I ask questions that are directed at figuring out what things matter to this specific Seller. For example, when can the Seller move and where are they moving? If my client can make it possible for the Seller to continue to live in the house for a few days or weeks, that is something the Buyer can offer to do that may have value to the Seller. In Seller-Leaseback, the Seller reimburses the Buyer the daily cost of the Buyer's Mortgage.

The single best example of correctly identifying something the Seller wanted more than money was the time that the Seller was a Compulsive Hoarder and my client offered to deal with everything that was left in the house that the Seller didn't want. My Buyer-Client was one of 3 offers, his offer was $50,000 less than one of the offers, and we got the deal.

Another example? I am currently assisting in finding homes for a litter of kittens, something that the Home Owner needs to have happen before she can move. Finding homes for those kittens is extremely important to her. Consequently, she is more focused on those kittens than she is on the actual sales price.

Typical terms that may tip the scales for the Seller:

Moving after the closing. Giving the Seller a lease-back means that the Seller gets to see the Buyer's money before they actually commit to the purchase of their next home. You haven't see misery until you have seen a situation where the Seller has closed on the next house and then the sale of their current home doesn't close. Miserable. Totally miserable for everyone associated with the deal.

A short Option Period or no Option Period (Sellers worry about the Buyer backing out until the Option Period is over)

Lots of Earnest Money. Typically, Earnest Money is about 1% of the purchase price. If the Buyer wants to get the Seller's attention, put up more money.

Loan Pre-Approval. If the Buyer is completely pre-approved for the loan, it is possible to eliminate the financing contingency.