Providing support to a seller can be hard, but you must do whatever it takes to help your seller feel confident and comfortable. It is important to remember that they are undergoing change, making huge decisions, and dealing with a transaction that probably involves a major, if not the most important, investment they own.
As an investor, wholesaler or investor agent, be sure to remain positive and focused no matter what is offered on the house. Also, go through the offers carefully and make sure you only deal with qualified buyers. These steps are the first steps in ensuring a peaceful negotiation for both the buyer and the seller.
The worst thing that can happen to a seller is to feel entitled to the offer before funds exchange hand and the title is turned over to the buyer. By then they are emotionally invested in another property.
They’ve already made plans to move on with their life. They’re excited about the future. And then, wham, everything falls apart and you lose market time, marketing momentum, and a considerable investment of time and money.
Require prospective buyers to deposit enough earnest money to secure your clients position. Squeeze as much as you can out of the buyer. Remember the more earnest money the bigger the commitment. You may be thinking that this advice conflicts with your objective to achieve a win/win outcome.
In fact, it simply requires buyers to uphold their end of the deal or sacrifice their deposit. Remember, you are representing the sellers, and protecting your clients’ best interest should be your main concerned.
Another area of caution is the financing. Require the buyer to provide proof of funds. You want proof-positive that the buyer can and will perform what they said they will. Lending institutions are notorious for writing loan approval letters with conditions or weasel clauses that protect both the institution and the buyers. Make it clear on the counter offer that no contingencies or conditions will be acceptable after two weeks.
The prevailing rule in seller protection is to tighten the language every step of the way. Remember at all times that your job is to protect and secure the interests of your the seller. The broader the language you allow, the greater the number of interpretable clauses make it into the transaction, each one endangering the level of security you can provide your client.
Remember always choose a offer that fits the seller’s need to get there house sold fast!
Until Next Time, Andrew Coleman