Writing a Successful Offer in a Hot Market Real Estate Cycle

 

 Writing a Successful Offer in a Hot Market Real Estate Cycle

 

Buying a home can be stressful And buying  a home during a hot market cycle can really tie your stomach in knots - but ONLY if you're not prepared properly. It's an agents job to educate their clients on the process of buying a home.  Writing a Successful Offer in a Hot Market Real Estate Cycle is an art that is learned. It is major negotiation skill.  Be sure to ask your agent about what's happening in the market. Knowing the current market statistics and trends is of utmost importance in being able to successfully navigate a bidding 'war'.

 

This past weekend we put 2 hot properties on the market. They were properly prepared for sale, staged, professionally photographed and priced correctly.  All systems were set to say SOLD quickly.  We were swamped with showings all day Saturday and Sunday for both homes. Offers began to come in within hours.   So that was great and not so great....why?

 

 Writing a Successful Offer in a Hot Market Real Estate Cycle

 

Quite a few of the buyers did not have their financing properly in place. Most of the buyers agents had  submitted a 'prequalification' addendum (but some did not). Imagine a seller reviewing offers and some have ZERO  DOCUMENTATION that the buyers are qualified. Why bother writing an offer if you can't prove to the sellers you can actually close on the home? Now who does that make sense too?

 

In Arizona we have a specific form that is required per contract to be attached to an offer.  This form clearly spells out where the buyer is at in the mortgage application process. We can see if the buyer has submitted their qualifying documentation to the lender? And we can also see if it was just a verbal discussion - which isn't given a lot of weight in a hot market (or any market for that matter). Remember - you will be competing with other buyers that are 100% pre-qualified. I can't stress enough that it is absolutely the home buyers job to prove to the sellers, beyond a shadow of doubt, that they are Ready, Willing and ABLE to buy a home and close on it.

 

 Writing a Successful Offer in a Hot Market Real Estate Cycle

 View Phoenix Metro Homes For Sale Here

 

Now I know everybody wants a 'good deal'.  But when you're in a hot real estate market and thinking about trying to get a 'good deal' when a home is only on the market a few days or so THINK AGAIN! If the home is priced right it will sell for very close to list price, at list price, over list price or way over list price. And this is when the Buyers Agent must have a thorough knowledge of current market statistics and trends so they can advise you on how to write a succesful offer. There isn't a lot of negotiating folks, in a hot market. You might be disappointed if you write a low offer and lose out on a home that is perfect for you. But once you figure this out by trial and error, you'll figure it out and make a decision. Do I want a home or not? If so submit a good offer. If not, well that's ok too if it's right for your situation.

 

One more tip for writing a successful bid: Don't ask for items that weren't listed in the MLS Plano, such as refrigerator, washer, dryer, Ramada, grill or whatever other items you think you can negotiate. Just don't do it! The buyers that have the best chance of winning a bid write what I call - a CLEAN OFFER. Buying a home is not like shopping in a store and picking out what you want to buy.  It's just not!  You are trying to buy REAL ESTATE - not stuff. Ok!!!!! Now move forward and buy the home of your dreams! Call us if we can help you buy a home in the Phoenix Metro Market.  We know the market and know how to negotiate successfully.

 

View Phoenix Metro Homes For Sale Here

 

 

 

Writing a Successful Offer in a Hot Market

 

 

Phoenix Property Shoppe
  

 

 

Anna "Banana" Kruchten
Designated Broker & Owner
CRB, CRS, GRI, CNE, SFR, CDPE, WLS


Phoenix Homes For Sale

 

Connect with me also on these sites!

 

    Anna Banana Kruchten Google+Anna Kruchten LinkedinAnna Banana Kruchten on GoogleAnna Banana Kruchten of Active Rain

 

 

 

                   Your Referrals & Testimonials Are Greatly Appreciated!

Comments

Anna,

What a great post!  There are offers, and then they are real offers.  I enjoyed reading your post.  A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) 29 days ago

Good day 

Thank you for sharing your information with us 

Have a great day.

07/23/2018.

Posted by Anthony Acosta - ALLATLANTACONDOS.COM, Associate Broker (Harry Norman, REALTORS® ) 29 days ago

Hi Anna Banana Kruchten CRB, CRS 602-380-4886, excellent advice to all agents. Offers must be clean. Don't cloud it with nonsense. Well deserved feature! 

Posted by Beth Atalay, Cam Realty of Clermont FL (Cam Realty and Property Management) 29 days ago

This is why it floors me that some buyers balk at particpating in a multiple-offer situation. They have no idea how many of those offers are not A-rated. If they would just GET INTO THE GAME instead of whining on the sidelines, why, they probably could write the best ever offer.

Posted by Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents, Put 40 years of experience to work for you (Lyon Real Estate) 29 days ago

Nana Knows...

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) 29 days ago

Anna, I've noticed in our market that buyers are really clueless as to why they should be pre-qualified. They seem to assume that once they have a property under contract that they have plenty of time to get to a lender and get qualified. It's an education thing most of the time. I've had a few who were just plain lazy and didn't want to bother. I didn't bother either. 

Posted by Mike Cooper, Your Winchester, VA Real Estate Sales Pro (Cornerstone Business Group Inc) 29 days ago

Anna Banana Kruchten CRB, CRS 602-380-4886 I would love a copy of your state's form for the financing for our Forms and Contracts Committee.  I require a pre-approval letter and verify the information before presenting offers on my listings (as do most agents in my area)...that form sounds very interesting!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) 29 days ago

Writing a Successful Offer in a Hot Market; like you said Anna, the first thing to do is write a clean offer.

Posted by Paul S. Henderson, REALTOR®,CRS,, Tacoma Washington Agent/Broker & Market Authority! (RE/MAX Professionals.) 29 days ago

this is most definitely another great post to be reposted or reblogged. Can I snag this one?

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) 29 days ago

Feels great when you can communicate well with anybody but especially in business can be a little sweet when he pays the bills. Paul S. Henderson, REALTOR®,CRS,

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) 29 days ago

Great advice for home buyers , 'Don't ask for items that weren't listed in the MLS Plano, such as refrigerator, washer, dryer, Ramada, grill or whatever other items you think you can negotiate. Just don't do it!' in a hot market. . 

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) 29 days ago

this is great information to share with any buyers looking for a home! the market is getting funny here in the DC market - so congrats on getting two properties under contract! 

Posted by Lise Howe, Assoc. Broker and Attorney Licensed in DC, MD, VA, (Keller Williams Capital Properties) 28 days ago

Our inventory is so low that nearly everything gets multiple offers in the first week. It's never been more important to have a qualified and experienced buyers agent representing you when you make an offer on a home!

Posted by Wayne and Jean Marie Zuhl, The Last Names You'll Ever Need in Real Estate (Samsel & Associates) 28 days ago

Good morning Anna Banana Kruchten CRB, CRS 602-380-4886,

Excellent and timely post. So glad to see this one featured. Preparation is always the key to success and whether you're preparing a home for sale or preparing a buyer to make a home purchase you must educate them every step of the way. If you are a buyer you must apply for a loan (the real process..filling out the application, supplying documentation to the lender etc.) is #1! no seller wants to take an offer from a buyer who is only talking to lenders!

Posted by Dorie Dillard, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) 28 days ago

Another wonderful post Anna with a great deal of wisdom!  Being prepared is so important to getting that offer accepted!

Posted by Gordon Crawford, Your Morris County Specialist! (Gordon Crawford Home Selling Team) 28 days ago

Congratulations on the feature Anna Banana Kruchten CRB, CRS 602-380-4886 . I love your blog and such important information for buyers to know

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) 28 days ago

One of the first questions I ask a potential buyer is if they are prepared to make an offer. If they are not I direct them to people that can prepare them...

Posted by Raul Rodriguez, Looking out for the client's interest and not my p (Covenant Partners Realty) 28 days ago

Hi Anna,
It boggles my mind that agents would even consider submitting an offer without pre-approval documentation.   Like Mike Cooper said, it's an education process for the buyer BUT who the heck is teaching those agents?  Apparently no-one.

Posted by Carol Williams, "Customized Mentoring & Marketing Services" (U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business.) 28 days ago

Good morning Anna. This is fabulous and congratulations on the feature. I like the idea of the form showing where the buyer is in the finance process. Great job on including stuff too.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) 28 days ago

I listed a remodeled home on a Friday in a great neighborhood at a hot price point in our market.  Several offers came in.  One was $10K under list price, wanted to do hydrostatic testing of the water pipes and have seller pay for any damage that was done, a 31 day right to terminate if the appraisal didn't come in and a weak pre approval.  The buyer's agent seemed shocked that they didn't get the house.  Buyer's agents: know your market!

Posted by Jeanne Gregory, The most important home I sell is YOURS! (RE/MAX Southwest) 28 days ago

Hello Anna Banana, another great blog and one that I can use since myself son e I do not get many features of hits.    Thanks

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 28 days ago

Thank you for sharing your information with us.

Have a great day ahead.

Posted by Fred Dorsey, Specializing in #Divorce #Probate&Estate (Douglas Realty LLC) 28 days ago

Buyers need to give their BEST offer, and the buyer's agent and buyers need to be available for an immediate response to any counter offers.

Timely post Anna, some markets are sizzling hot right now.

Posted by Linda Metallo DiBenardo (Re/max Impact, Lockport, Illinois) 28 days ago

Hi Anna- times change and so do markets!  It's so important for buyers to hire the very best agent in their area and then to listen to them. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) 28 days ago

Well said!  I'm always stunned by offers in a hot market that come in below list and asking for tons of closing help, have a lender letter that is not worth the paper it is written on, and then the buyer wants extra stuff.  

Posted by Chris Ann Cleland, Associate Broker, Bristow, VA (Long and Foster REALTORS®, Gainesville, VA) 28 days ago

Featured in the group:  BARTENDER, MAKE IT A DOUBLE.

Posted by Chris Ann Cleland, Associate Broker, Bristow, VA (Long and Foster REALTORS®, Gainesville, VA) 28 days ago

Great advice, Anna... I "cut my teeth" in this business in NYC where it was not unusual to see 13 offers for a coop apartment in just one day. So for me, multiple offer situations were not new when Charlotte's inventory became scarce. But as I worked with both buyers and sellers in our market here, I realized many agents had absolutely no clue about or experience with this kind of market. And as a result they really didn't know how to properly advise and counsel their clients.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (RE/MAX Executive | Charlotte, NC) 28 days ago

Hi Anna Banana Kruchten CRB, CRS 602-380-4886 , I wish every REALTOR® could read this blog.


Posted by Beth Atalay, Cam Realty of Clermont FL (Cam Realty and Property Management) 28 days ago

Having a knowledgeable skilled agent is an important element for buyers, when it comes to writing successful offers in a hot seller market.  You make excellent points.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) 28 days ago

CONGRATULATIONS Anna, on having this blog FEATURED in the Old Farts Club group!  

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) 28 days ago

Excellent!  And for those buyers who ask for the sun and the moon when the stars are aligning for the sellers, they aren't listening to their agents closely enough.  

Posted by Susan Haughton, Susan & Mindy Team...Honesty. Integrity. Results. (Long and Foster REALTORS (703) 470-4545) 28 days ago

Well done, Anna, and sich good advice. All of this just makes it crystal-clear that working with the right buyer agent to educate, guide, and counsel you effectively is essential in today's market. There are far too many ways that buyers jeopardize any hope of getting their offers accepted or even taken seriously by sellers and listing agents. Buyers need to listen to the people that know what's going on in the market.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude - Carlsbad (Solutions Real Estate ) 28 days ago

Anna, This post can save home buyer's out there in the market looking to purchase a lot of time, if they will listen to their agent. Congrats on the feature, well deserved!

Posted by Wanda Kubat-Nerdin - Wanda Can!, So Utah Residential, Referral & Relocation REALTOR (Prado Real Estate South) 28 days ago

Very little negotiating in a hot sellers' market -- so true. That is only one of the truths you covered in your excellent post.

Posted by Lottie Kendall, Serving San Francisco and the Silicon Valley (Pacific Union International) 28 days ago

Anna, I have always been a fan of clean offers no matter if it was a hot market or not, the idea is to have a Win-Win for both sellers and buyers, glad to see you write about this. The word needs to get out, Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 28 days ago

Anna, as you so well state, it is about educating the consumer.

In a Hot Market, an offer with the least contingencies and demands will rise to the top.

Thanks for sharing

Posted by John Wiley, Lee County, FL Real Estate GRI, SRES,GREEN,PSA (Right Move Real Estate Group- EXP Realty) 27 days ago

If only buyers would listen to their agents before they start the home search!!  We know what's going on in the local market and how to work it.  Whenever I hear the phrase ' we want a good deal'--I ask for specifics.  A 'good deal' is one where both parties are happy with the outcome!  

Posted by Mary Hutchison, SRES, ABR, Specializing in Brookside, Waldo, Prairie Village (Better Homes and Gardens Real Estate-Kansas City Homes) 27 days ago

Buyer agents and their clients need to take this information to heart.   Making a clean offer at full price on the property you really want is the quickest way to get it.  Small builders in our market sell at list price.  Agents know that and still submit low offers and are surprised when their clients don't get the home.  Too manyy good offers coming in out there for the builder to counter a bad one!

Posted by Mary Ann Daniell Central Texas Realtor, Homes - Land - Small Acreage (Coldwell Banker United, Realtors - Subsidiary of NRT LLC ) 27 days ago

Excellent Advice Anna Banana Kruchten CRB, CRS 602-380-4886.

When you "peel" back the layers of an offer...the "fruit" of the package is "bunched" all on one page my Nebraska contracts... the price and cash or loan sections.

Having a full loan approval contingent on appraisal only on Bank letterhead is great. Having a cash offer with Bank letterhead documentation that the funds are really available is also great. 

If a buyer wants to have his/her offer "picked" from the bunch...it cannot have a lot of dirt and bruises on it...then and only then does it have a chance to be the top "Banana"!

Posted by Mike McCann - Nebraska Farm Land Broker, Farm Land For Sale 308-627-3700 or 800-241-3940 (Mike McCann - Broker, Farmland Broker-Auctioneer Serving Rural Nebraska) 27 days ago

This post should be required reading for all buyers' agents - and all buyers as well!

Just think of all the time and energy they waste writing those "go-nowhere" offers.

Posted by Marte Cliff, your real estate writer (Marte Cliff Copywriting) 27 days ago

This is post is so "on-point"  for a seller's market. It is hard for some buyers agents to get their buyers to understand the importance of "being ready" to make an offer. It just takes a few rejected offers and then both buyers agent and buyers figure it out. 

Posted by Terrie Leighton, Reno Real Estate Agent ~ Selling Homes in Reno (Ferrari-Lund Real Estate ) 27 days ago

You are right on target Anna.  The stress is high and buyers need to bring their best offer the first time or they may not get the house.

Posted by Sybil Campbell, REALTOR® ABR, SFR, SRES Williamsburg, Virginia (Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia) 27 days ago

We are in a hot market in central MS also, Anna, and buyers should be mindful to submit their best offer. Ironically, I just posted an article very similar to yours. Great minds think alike! 

Posted by Pat Starnes-Front Gate Realty, 601-991-2900 Office; 601-278-4513 Cell (Front Gate Real Estate) 26 days ago

Can't emphasize the ready and willing part enough.  When homes only last the weekend, you have to be prepared to make a huge life decision very quickly.  

Posted by Kevin Mackessy, Dedicated. Qualified. Local. (Blue Olive Properties, LLC) 26 days ago

I am keeping this one in my file Anna.  Thanks for the WOW (words of wisdom)

Posted by John Henry, Residential Architect, Custom Home Design (John Henry Masterworks Design International, Inc.) 26 days ago

While it is definitely the buyer agent's 'job' to educate the buyer, it's not always possible to get thru to them...

A "clean" offer is definitely the best. Working with the listing agent is also a good idea when you want something to happen in your favor.

Thanks for sharing Anna Banana Kruchten CRB, CRS 602-380-4886. Time to confirm my buyers 'get it'!
Bruce

 

Posted by Bruce Kunz, REALTOR®, Brick & Howell NJ Homes for Sale (C21 Solid Gold Realty, Brick, NJ, 732-920-2100) 26 days ago

Good afternoon Anna Banana Kruchten CRB, CRS 602-380-4886 - good to tell buyers like it is.  They need to understand that they must put their best foot forward.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 24 days ago

Great blog, Anna Banana Kruchten CRB, CRS 602-380-4886 . In a hot market with multiple offers, the buyers must put their best offer forward and you outlined a number of ways to do this. Hope you have a great weekend. 

Posted by Lynnea Miller, Premier Real Estate Service in Central Oregon (Bend Premier Real Estate) 24 days ago

It amazes me that buyers want to pay less and sellers want more than the value. LOL Everybody craves a deal. I'm not sure how we got to this moment in time unless everyone is still used to the slow market of 7 years ago.

Posted by Anne Corbin, Serving Lake Anna & Central Virginia (Fritz Realty LLC) 21 days ago

Hello Anna - this is an easy- to-follow guide for buyers who want to be successful purchasers.

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) 16 days ago

This blog does not allow anonymous comments