TOP SECRETS FOR HOMEBUYERS | Jared Jones | Jones Group Real Estate
Today, we're going to talk about multiple offers and how you get your offer through the traffic so that you can get your dream home. Let's talk about it, everybody, Jared Jones. And if you're a buyer or an agent working with buyers, you need to watch this video because the market is [inaudible]. And if you're a buyer and you've been making offers and trying to get through the fray, you're probably ready to kill yourself. It's just the way it is. What, but don't despair this checklist of 10 things. We'll make sure that you've done all that you can do to get to the top of the list. When a seller is considering who they want to choose to be the cool recipient of their awesome home, let's get started. Number 10, get all the disclosures in the upfront. So this is more for your agent and something that you want to know as a buyer that disclosures are available.
When you buy a home to tell you everything that you need to know many things that are often unknown to the common person, looking at a property on Zillow or something like that. The disclosure is a deeper dive to explain to you what may have gone wrong. The history, if you will, of this particular home. Now, if a seller is uncomfortable with the fact that you may not know everything, they might be a little bit more hesitant to accept your offer. If you've signed their disclosures and said, Hey, I know that a hurricane came in 2018 and blew a huge Oak tree into the corner of your house. Leveling half the home, whatever the reason you get the idea that the seller already knows that you've seen all the disclosures. You've seen the hairy secrets, and you're still interested in going to make them feel better. Also, they want a complete offer.
They don't like to sign offers that are partial offers. Having all the disclosures, just a better look from your perspective as a buyer, going to make an offer on a seller's home. Number nine, cut out the contingencies. So every single offer, probably in other States, including Florida, they're going to have contingencies for things like appraisal financing, inspection, title, all kinds of different things that protect the buyer's earnest money deposit in case something goes wrong. Something that makes them feel nervous and they need to get out of the sale. Well, if you remove some of these risk factors for the seller to accept your offer, the seller believes, Hey, look, this buyer has removed their finance contingency. They obviously have confidence in their own ability to purchase my home. I'm going to look at them a little bit harder. So you can't maybe reduce every contingency.
For instance, keep the contingency for a clear title. There's really no reason to remove something like that, but there is a whole lot of other contingencies that just make the deal easier. Number eight, lower the timeframes of contingencies. So along the same lines, do you really need 15 days for inspection? If you can get the inspection done in three or five days and have that closed where the seller was, Hey, look, they're not going to take me down the road 10 or 15 two days and say, well, our Sri, I roped her to house and our fish many problems here. And I think I need to offer you $10 from my forte. That's going to make them feel better. They're going to accept your offer. Number seven, lower the concessions. It's a huge deal when you're competing with other offers, how much the seller nets if they accept your offer.
So the more concessions that you do not have in the deal, the better off you're going to be. So if you want the seller to throw in a $3,000 repair request, that's a bad idea in the middle of a competitive situation. And I feel bad for many buyers that have scrounged and saved their down payment, but do not have the money for their closing costs. In this instance, when you're in a dog fight for a house, the seller's motivation often is what are they going to net at the end of the day? And a lot of times, if you need help with closing costs, that automatically reduces how much the seller can make if they sell their home to you. So, unfortunately, one of the things you can do is look at homes that are not in multiple offer situations, homes that have been on the market past the primetime threshold of 50 or 20 days.
And look for those homes and trying to go shoot on those all by your lonesome. When you're not having competition, number five, don't ask for their stuff. Hey, I just love your kid's bunk bed that she made by hand with lumber out of the backyard. Would you like to throw that in with the sale? It's not going to be a good idea to ask for that. Hey, the Rolex on the nightstand, I've always wanted a sub, Mariner. You throw that in with the fail you get. The idea can ask for, be competitive. Leave the hairy requests alone. When you're in a competitive situation, number six, lay off the cumbersome requests. So there's a little dinginess on the tile roof. Now's probably not a good idea to ask the seller to get up there and power wash it for the sale to be consummated. You just want to lay off things that are those little add-on distractions.
Make it easier on the seller is the point. Hey, they got a big pile of pavers in the side yard. They never used it in the driveway. Don't ask them to load those things up. Hey, we'll take them off your hands. You know, we'll donate them for you. You know you don't want to cover some requests to bury your offer and make it harder to sell the house to you. Number four, to get a better deal. Don't focus on the first negotiation. Play the negotiation in two steps in central Florida. And this may be common in other areas we have, what's called an as-is form. I'm not giving you law advice here, but on our inspections, there's a time where the buyer can actually stop and assess whether or not the price they're paying for the house based on all their inspection. Findings is still a fair price.
So a lot of times in Florida, real estate agents here know this, that there's an initial negotiation. And there's oftentimes a second negotiation where I like to say, as a buyer, you get a second bite at the Apple. And the best thing about it is at first, you're competing with all of your friends at the negotiating table, but the second time it's just you and the seller. So when you get down to the bottom of it, you can analyze what might be wrong and take some ideas on possibly chiseling the seller down further. Now the seller in a multiple offer situation may tell you to pound sand. They know they got backup interest, so you're still walking a fine line. But as a buyer in a contingent situation, take advantage of it. When you have that second time to negotiate at the inspection, take a shot, see what happens.
So playing it from the very beginning of the idea, you're gonna negotiate over two separate occasions might get you where you want to be. So you don't have to get it all upfront, making it easier to get accepted, and then have that second negotiation later. Number three, prove you're a strong invalid buyer. Well in our world, the number one way you do this is by providing a preapproval letter. Most people are financing the home purchase. Now a second thing you can and should do when you're in a contentious situation is prove how much assets you have in the bank. Chances are you have money in the bank to put down as your down payment. You can provide proof of funds for that too. The other thing I would say about this to get that thing done early on a lot of buyers, wait and say, I'm going to get pre-qualified when I find a house, I like, well, chances are the pre-approval process.
If you're going to get a good lender to pass on you, they're going to need a couple of days to get this done. And in this market, you may not have your home may very well sell right out from underneath you. So while people are hesitant to go to the lender early, there's no disadvantage. You. In fact, there's plenty of advantages to you getting that process started. And even if part of your money is borrowed show proof of funds and cash for the rest. And if you're a cash buyer, for sure you need cash proof of funds on the initial offer a letter of introduction from the bank that just says, Hey, they've got enough money on account to buy this home from you. Very, very important. Number two thing, to get your offer accepted a good earnest money deposit. Okay, good. Faith deposits. Customarily are 1% of the asking price.
So in our real estate market, if you come in on a $500,000 house with less than $5,000 on deposit, then it looks very weak. The second thing is if you're paying all cash and you're lower than three to as much as 10%, that's also considered weak as well. So a lot of times cash buyers are coming in with much more deposit and turn really eviscerating everybody at the table. Who's competing with them who have much lower deposits because they're all financing the majority of the purchase. And the number one tip I would give you for getting your offer accepted in a multiple offer situation is to do a love letter to the seller. A love letter is simply an offer letter that accompanies your offer. Now, as a realtor, I write mine for my client. Nice. I craft what I know about them to use that to the advantage of the seller.
Now I'll do research on the seller. I will see what is it they do? What do they do for a living? What are their hobbies? What are they like? Where can I find common ground to let the seller know who my buyer is? Because a lot of agents give a lot of Koreans, this particular piece, you know what they'll say? Wow. When it comes down to the love letter, you know, guard, not ever shells about the money, sham showers just really want to be hearted and have a charitable interest and who they're showing house true as Joe Biden puts it. That's probably a little bit of malarkey because in reality sellers are out for number one, the home you own is really one of your top investments. So are you really going to find a heart-rendering letter and then give your home away for less than someone else's willing to pay a high doubt? It, I like the sentiment though. I think it's the icing on the cake. I think when you're in a multiple offer situation, you need to load the gun chamber every barrel and launch every bullet at the problem that you can to give yourself the best shot at coming on top,
I've missed anything, or you have an idea on how to do it differently. Please comment. I'd love to get the discussion started below. Please like the video, share it with somebody who needs it. Who's out there looking for a house and getting beat senseless and like subscribe to the channel, hit the bell icon. So you're getting updates. We'll talk to you guys.
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