Home Buying in Raleigh>Question Details

Trulia Ralei…, Other/Just Looking in Raleigh, NC

How can a homebuyer sweeten their offer, without raising it?

Asked by Trulia Raleigh, Raleigh, NC Tue May 7, 2013

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The home on Elmfield closed on December 12, 2012 after being on the market over 90 days as a SHORT SALE. Obviously the owners were experiencing financial problems and rather than go into foreclosure, opted to work with their bank to eliviate some of their future credit issues. Such occurred all over the country..not just especially here ..and was NOT the problem of Realtors but the banks that created the mess in the first place. Realtors had nothing to do with setting this price, just marketing it. In this case, ended up to be a great deal for the buyers and I truly feel sorry for the sellers whom were the original owners.

Rizara, before you pan Realtors like you do, you need to step into our shoes just once. I've done and also supported people in commission jobs before I became a Realtor . This is one of the few occupations that offers no advance pay on sales before delivery and there is no base pay to get you through the rough months. In most cases , we have to wait 60 - 90 days after a contract to realize any income. 100% of my expenses are my own to deal with plus we have to share the commission with our parent company. It's one of the only occupations I know that once we do our part, can never consider a home SOLD until we get to the closing table and even then not until the closing attorney is handing keys to the new buyer.. Oh yeah, before we get to that point, we have to deal with lenders, appraisers, home inspections, pest inspections and now do dilgence periods which allow a buyer to walk just because they had a bad dream about the house. And to make it even better, we pay self employment taxes to the government on top of normal income tax.

Before you bash a profession which has more strict ethics clauses to live under than anything else I have ever done in my 59 years, you need to give it a try!
0 votes Thank Flag Link Sat May 11, 2013
This is for Julie,

With this note, I am including an example of a home in Raleigh that has a value of $830,000 and sold for almost 50% discount- $453,000!!! Such deals are not an everyday deal, but they do exists especially in NC area.

As to the honesty of Real Estate sales people, they will have to change a great deal before the "average" buyer or seller can trust them. In the survey that you are referring to, the Real Estate sales people came in first and used car sales came in second!

Sales people in the Real Estate business seem to be concerned about making the sale/commission no matter what it takes. In the past few years, I have heard the same Real Estate sales people say that it is a "good time to sell" and at the same time, they would tell you " it is a good time to buy" and how can this make any sense?? Is it a good time to buy or a good time to sell??? Which one is it?

Description provided by Trulia

2917 Elmfield St This Single-Family Home located at 2917 Elmfield Street, Raleigh NC sold for $453,000 on Dec 13, 2012. 2917 Elmfield St has 3 ½ baths and approximately 4,572 square feet. The property has a lot size of 9,148 sqft and was built in 2006. 2917 Elmfield St previously sold for , $830,000 on Nov 9, 2006, and $182,000 on Apr 3, 2006. The average listing price for similar homes for sale is $433,323 and the average sales price for similar recently sold homes is $422,000. 2917 Elmfield St is in the North Raleigh neighborhood in Raleigh, NC. The average price per square foot for homes for sale in North Raleigh is $115.
0 votes Thank Flag Link Sat May 11, 2013
This is for Rizara,
He says he's glad he is not working with real estate agents, "without any influence, crap or advice." C'mon Rizara! The Trulia site actually asked this question. You need to assume the question is asked specifically for a situation where there may be multiple offers or full price deals being put on the table. I looked through some of the answers, and I don't see any "crap" advice, given the assumed scenario.

Some buyers are very educated and have had many real estate transactions. Given your price range, you are probably a smart person who has had quite a few business dealings. Am I right? You want to handle it yourself, that's good.

But that is not the case for everybody. And some people just don't have time to do the research.

Having said all this, I also understand your frustration with real estate agents. Not in this case..... the answers were insightful..... but a lot of questions posed on this site have one answer, call ME. Call me, call me, call me. And before I was a real estate agent, I had a few transactions and I can tell you it is terribly frustrating. I hired the "best" agent from a well known firm in Raleigh to sell my house. She talked a good game..... she's the expert don't worry about. So the house goes in the MLS and I never hear from her again. Seriously. I'm calling asking about activity, showings, marketing. No answer. We as real estate agents have in general a bad reputation. In this past year's ethics CE class, when the general public was polled, we were right up there with attorneys and used car salesman as far as trustworthiness. Now that I am thinking about it, I think I will do a blog post. I just ask my fellow real estate professionals to be part of the solution. Quit posting "crap" answers on this site, to get your "Trulia" points or whatever. We are good people trying to make a living like everyone else these days. But perception is everything. We can't be all things to all people and we lose our credibility when we try to do that.
0 votes Thank Flag Link Fri May 10, 2013
Rizara, you are in a different price point where the current hot market has not gone yet, so enjoy your bargain shopping!
But if you would of been a buyer in under $290K price point in Cary or N/NW Raleigh, you would understand why buyers asking their agents what to do to get the home they want!
0 votes Thank Flag Link Thu May 9, 2013
Reading all of this crap, I am so glad that I am NOT working with a real estate sales person! We are in the process of purchasing a home in Raleigh for around $700,000 -$800K and I am doing my home work without any influence or crap advice!!

In today's market, we do NOT need to "sweeten" any deals out there since there so many people that have bought homes and can no longer pay the mortgage- and over paid for them. It is sad, but this is reality. Check Trulia.com and see how many homes there are that have huge price reduction and still not getting sold.

What is most interesting about the Raleigh market is that I am finding that most homes are selling for 20 to 30% BELOW tax value!! In my area, Mclean, VA 22102, we are selling our home for 26% ABOVE tax value.

DC area resident.
0 votes Thank Flag Link Thu May 9, 2013
Rizara, I just made a general post that addresses what you have said above. You I am sure have offended some agents out there. Ron Thomas can tell you you are wrong on so many levels because he is in Fresno. He wouldn't answer that way if he was in Raleigh. he's be sucking up to you, I'll bet. :) Read my post. I don't have a dog in this hunt, and I am not trying to get your business. So I would like your feedback. Thanks, Julie
Flag Fri May 10, 2013
You are really the epitome of "a little bit of knowledge".
You are so wrong on so many levels.
Flag Thu May 9, 2013
A little unusual method once worked when I represented buyers who were in a multiple offer situation.
They wrote a note to the sellers telling them that they loved the house and why they wanted to purchase and live there. It was a tale of how they had searched for a perfect home for their family and how when they saw this house, they knew it was where they want to live for a long time. They talked about how important family meals were and they loved the dining area, etc. I gave it to the listing agent, who in turn passed it on to the sellers. The sellers were intrigued by this note and decide to accept the buyers' offer. A pleasant surprise for all of us.
0 votes Thank Flag Link Wed May 8, 2013
One of my buyers just asked the same questions today, and here is a summary of the suggestions for you:
1. Go as high as you can, full price in multiple offer is a must
2. Have the approval letter from the lender stating that you down payment funds were verified and your credit is checked
3. Offer as much DD money as you can afford
4. Give higher then $3000 in earnest money
5. Don't ask for help with any closing costs
6. Forget all personal property
7. Buy AS IS
8. Shorten DD date
9. Offer quick closing (if seller wants it)
10. Write a letter explaining why you LOVE this house so much and how well you will take care of it
11. Make a larger down payment 80%LTV
12. Ask if there is anything else seller is looking for: they may want to rent back, they may not want to take some items with them, etc

I hope this list is helpful to you, many more items are possible once we discuss a specific house opportunity. Call me: 919-868-1040
0 votes Thank Flag Link Tue May 7, 2013
I always love buyers who are already PRE-APPROVED for their mortgage meaning all that is required for final approval is a signed contract. That typically shortens the period to close in many cases now by 30 days or more. This makes the seller feel much more secure in the transaction. I have seen sellers accept a lower offer in a multiple offer situation to go with the buyer who is already approved for their mortgage meaning one less major thing to worry about. Also, not a bad idea to let the seller know that when it comes to the inspections, you aren't going to be picky and will only address items of major concern.
0 votes Thank Flag Link Tue May 7, 2013
All the answers below are correct, the only thing that could add would be to have a due diligence period as short as possible to get your inspections completed on the home.
Del O'Neal / O'Neal and Associates
Cell 919-812-8001
0 votes Thank Flag Link Tue May 7, 2013
Don't ask for any concessions or have any contingencies in the contract. A cash purchase would be as sweet as it gets!
0 votes Thank Flag Link Tue May 7, 2013
There are a few ways you can make an offer more attractive without raising the sale price. You can increase the Due Diligence Fee and/or the Earnest Money to show how serious you are and that you easily have funds for closing. Keep in mind though that the DD Fee goes immediately to the seller and if you end up walking away they get to keep that money. As long as you go to close both of those amounts go towards your closing costs and downpayment. As Joseph mentions, not having a contingency is good, as having to sell your own home to purchase the one you're making an offer on can throw a wrench in everyones plans.
Another way to make the offer attractive is to ask the listing agent what the sellers want in terms of a closing date. If they are in a hurry to move then a quicker close is good. If they're not in a hurry, or have specific date that their next home will be ready then a later date may benefit them.
Always provide a pre-approval letter that states that your credit has been pulled and based on the lender's verification of your assets and liabilities you are qualified to purchase the property at X address, or provide a proof of funds letter if making a cash offer. This gives the seller even more confidence that you are able to come to the closing table.
These are a few of the best ways to make your offer more attractive without paying more. If I can help you in your search, or your negotiation, please give me a call or shoot me an email.

Chip Barker
Broker, REALTOR®
919.271.1074 (Mobile)
0 votes Thank Flag Link Tue May 7, 2013
No contingencies or don't ask for closing credit.
0 votes Thank Flag Link Tue May 7, 2013
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