If you are from Mars or something you might not yet know it, but it is a buyers market in Columbus, Ohio. Unfortunately it is a buyers market where fewer buyers have much money for closing costs, etc. Due to this, we are seeing a lot of very low offers that include 3 or 4% in closing cost help.
If you are a buyer that wants to take advantage of today's market and want closing cost help please consider strengthening your offer in other areas.
Consider these points:
•1. Make the deposit a little higher if you can.
•2. Offer to let the listing agent hold it (good will)
•3. Keep inspection times and request to remedy times as short as possible
•4. It is suggested that you have your attorney look at contracts, but please have this completed in a few days, not a few weeks.
•5. Have your loan approval completed, subject to appraisal, and try to make this period short too.
Please remember that a seller may consider taking a lower offer, but this is a give and take proposition. If you get the lower price, what are you giving in return? My suggestion is to help the seller rip off the band aid by making the deal move quickly.
Buyers agents, please read through the remarks and talk to your clients about those remarks before submitting offers. If in doubt, please call the listing agent. For example, if the remarks say "Bank Owned and Selling As-Is", it might be a waste of time to negotiate the request to remedy timeline. Also, the remark that all offers are to include proof of funds letter wasn't put there just so we could fill the space. The seller really wants one. Not only does the seller want the letter, he would prefer it is not more than 30 days old and coming from a reputable (known) lender.
Recap - It is not bad to offer an amount lower than asking but if you do, 45 days for inspections, 15 days for attorney review, and a pre-qual letter from JimBob's Loans written on a Denny's placemat in December of 2006 is not going to help you get the home.
On the other hand, maybe I'm the one that doesn't get it.......
Do you have questions about distressed assets, receivership or bankruptcy sales, auctions? Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
United Country Gryphon Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
good info... especially about the mortgage
I am getting a lot of low ball buyers who are forcing the issue with the mortgage - not even applying until after the contract has been signed
that means a lot more work and faster for me.
I don't mind quick closings at all... but if you are trying to make a deal, doing your homework first will definitely make it work better!
JimBob is licensed in Ohio too?
- James
RIGHT ON RICH!!! That's exactly how low ball offers should be executed!
this is so right on when it comes to low offers - thanks for sharing
Rich
ever feel "close" with the quotes below
Nahhh... I'd say you get it for sure.
Rich,
I love it! Great advice.
Back when the selling agent presented his own offers to the owners and listing agent, I once took $10,000.00 in twenty dollar bills to a presentation. I asked the sellers if we can come to a deal would they accept a cash deposit. Then I took almost an hour counting out the cash on a table between us.
I'm not sure the sellers even thought about the buyers offer. They were salivating over the cash, like Pavlog's dogs. They signed the offer. When I ask the listing agent (who I knew well.) to sign a recite for the cash, he freaked. When he pushed the cash into his brief case the sellers cried. They thought I was going to leave it. As I was leaving the lister ask why I left him the cash. I told him I wouldn't carry cash after dark in that nationhood, he may have spent the night.
Damn good advice, give the seller everything you can that doesn't cost much. Make sure the sellers know how they WIN!
Bill
William J Archambault Jr
The Real Estate Investment Institute
First National Mortgage Sources
Rich-
Thats great. Love the humor and good advice. Sadly; some listing agents won't deal at all. Then 2 months later they reduce the price to the amount you offered 2 months ago. Bummer ...