As a listing agent, it's not the best idea to show your cards and your semi-lack of experience. I submitted an offer a couple of weeks ago in the million dollar price range. My buyer decided they wanted to do an all cash offer. Great!
What does it take to get an all cash offer excepted more readily than a financed deal in this market? Have all your ducks in a row. This means explain to the buyer that an all cash offer means NO contingencies! No contingencies on selling a house. No contingencies on receiving funds from some investment you made. It means the cash is readily available.
With that, I like my cash buyers to really show how serious they are which also includes a short escrow time. Why should the seller have to wait to close if the cash is there? If they wanted to wait to close, they might as well risk a buyer with financing that will take a while, especially above the jumbo loan limits.
But what I really like a buyer to do is put their cash where it counts, earnest money! If it's not contingent upon anything, let the seller know you're willing to lose a substantial amount of money if you back out.
For our offer, we submitted it with a $20,000 earnest money deposit. Yes, $25,000. The listing agent's response?
"What? WOW! That's a lot! Are you serious?"
Of course we're serious or we wouldn't put up so much. I explained the other ins and outs of the offer so she could understand our logic. She seemed to understand, but then asked if I could type up a letter so she could more easily explain it to her seller. I actually already anticipated this since I had already looked her up and knew she was fairly new, and I told her it was already written in an email to her. Big sigh of relief on her end.
As a listing agent, it's best to not show your cards and lack of experience, especially in this price range where the average home in this market is under $200k. As a seller, you should really be questioning agents when you interview them to make sure they're prepared for several different scenarios of what could happen. You don't want your agent out-smarted by the other agent do you? And this million dollar home is not under contract for anywhere a million dollars, and my buyers are happy! One more week 'till closing!
**Are You Packed Yet?**
Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way.
** #1 Agent in my Office for all of 2008 **
Copyright© 2010 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* An Agent's Lack of Experience Helped My Buyers Get a Great Deal! * was first published on donnahomesblog.com