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December 22, 2010 at 6:11 PM #644637
SD Realtor
Participant

Racer sounds like it was a combo of a tough break and yes, it seems the offer could have been presented in an alternate manner. It is what it is. Chalk it up to a learning experience. Here are a few ways to make your offer more competitive:

– Do not ask for a termite clearance.
– Do not ask for a home warranty or let the seller know you will pay for it.
– Accelerate your inspection contingency to 10 or 12 days.
– Provide proof of funds. Make sure they are current.
– Come with your strongest offer. Dont assume there will be a counter offer. Dont mess around.
– Keep the escrow as short as possible.

Please note these measures should be taken iff you REALLY want the home. If you are trying to get a good deal then that is fine but you risk losing out. If it is a home you love then only you can put the price tag on overpaying.

Finally be prompt and move quick. As a listing agent I am wary of an offer that comes in at the last minute after I have a few offers on a place. Those last minute ones are people who know they have to act hard and act fast and there is a propensity for those buyers to back out if accepted because they were pressured to make the offer by time rather then by desiring the home. That is not to say that I wouldn’t take the offer and you do hear stories about a last minute offer coming in and blowing people away. Still my advice would be to err on the side of caution and move early. There are cons to this as your offer may be used as leverage to get other offers but you do what you gotta do.

I cannot argue about the validity of working with the listing agent. I am not saying you would get a break on price but you might and the listing agent will be happy double ending. However I know plenty of agents who have represented buyers and had the offers accepted. I know I have and I am sure sdr has as well. Still TG gave good advice and I could never argue against it except to repeat your representation will not be what I would call stellar.

One other thing was that you did not mention how much cash the other buyer came in with. I will agree though that ANY REO lender wants a fast escrow rather then 45 days. That was a VERY bad move.