Everyone has encountered buyers that think they can get the moon for a song. After all, their cousin got the deal of the century, and the cosmos owes them a good deal as well. Or maybe it was the guy 3 cubicles over 2 companies ago. Whoever it was, theyâ€™ve â€œheardâ€ that banks will accept any old ridiculous offer that comes along because they are so â€œdesperateâ€ to get properties â€œoff their books.â€
There is no set ratio that the banks use and no â€œsweet spotâ€ to determine pricing. And sometimes, the only way buyers figure things is out is to actually let them submit a silly offer and see what happens in â€œreal lifeâ€ and â€œreal time.â€ Listing agents know what is going on when the offers come in and respond accordingly.
You can, however, as you suggest, sweeten the offer. You do this by:
(1) Writing reasonable offers â€“ keep within 5-7% of the comps.
(2) Make sure you contact the listing agent BEFORE you write an offer and discuss all the details with them â€“ they will most likely be able to give you the guidelines you need to write a decent offer. DO NOT just write an offer without calling first and then fax it over. It is SO frustrating to listing agents when offers â€œmagicallyâ€ appear in the fax machine â€“ especially when there are already 4 other offers on the property and the agent writing the offer never bothered to check.
(3) Including a complete offer package that includes the following:
* Purchase agreement and buyerâ€™s advisory
* AS-IS Addendum (donâ€™t use a WPA)
* Statewide Disclosure
* Short Sale Addendum
* Broker Cooperating Commission Agreement with the Short Sale box checked
* PreApproval letter
* Photocopy of the deposit check
I also just wrote another post that may be helpful: