I’m willing to bet you know this pain…
You finally find the perfect property for a buyer, they get their hopes up, you write an offer, and… nothing.
They lose out in a multiple-offer scenario, and you’re right back to square one.
It hurts. For them. For you. For your schedule. For your bank balance. For your reputation.
So let’s fix that.
On today’s #TomFerryShow, I’ve got 3 tips to get your buyer’s offer accepted – and a bunch of ideas within each of those three tips.
In times like these with so much competition for every property, it takes some ingenuity to separate your offer from the pack. Find out my advice in this quick video.
For the majority of my life, I’ve been passionate and dedicated about changing lives by giving away the very best strategies, tactics, and mindset techniques to help you and your business succeed. Join me as we take this to level 10!
Keep up with me and what's new on my other channels:
Website - https://TomFerry.com
Facebook - https://facebook.com/TomFerry
Instagram - https://instagram.com/TomFerry
Twitter - https://twitter.com/TomFerry
Podcast - https://TomFerry.com/Podcast
YouTube - https://youtube.com/CoachTomFerry
You finally find the perfect property for a buyer, they get their hopes up, you write an offer, and… nothing.
They lose out in a multiple-offer scenario, and you’re right back to square one.
It hurts. For them. For you. For your schedule. For your bank balance. For your reputation.
So let’s fix that.
On today’s #TomFerryShow, I’ve got 3 tips to get your buyer’s offer accepted – and a bunch of ideas within each of those three tips.
In times like these with so much competition for every property, it takes some ingenuity to separate your offer from the pack. Find out my advice in this quick video.
For the majority of my life, I’ve been passionate and dedicated about changing lives by giving away the very best strategies, tactics, and mindset techniques to help you and your business succeed. Join me as we take this to level 10!
Keep up with me and what's new on my other channels:
Website - https://TomFerry.com
Facebook - https://facebook.com/TomFerry
Instagram - https://instagram.com/TomFerry
Twitter - https://twitter.com/TomFerry
Podcast - https://TomFerry.com/Podcast
YouTube - https://youtube.com/CoachTomFerry
Today we're talking about how do you position your buyer to get their offer accepted, hey welcome back to the tom ferry show. So let's talk about it. What's your strategy today to get your offer accepted when you're in a multiple offer situation? What do you do? What's your approach, how many, if you will you know arrows in the quiver, do you have to make sure that your offer stands out, looks clean and ultimately gets the yes, here's what i wrote down a couple things. Obviously, we all know number one is to reach out to the selling agent reach out to the listing agent and you're going to say tom they're busy they're not responding.
They got 37 offers it's a crazy home. You know it's going to sell very quickly. Yada yada yada here's my response: you have this phone, hey tristan tom ferry. I just wanted to reach out about your property on 1-2-3-4 banana street.
My buyer is fully qualified ready to close, can close immediately, and she asked me this question. What's important to the seller. Like is there something we could do for the seller? That would make this deal a no-brainer. If you can, let me know, i would totally appreciate it now, guess what they may not respond to that.
But at least you ask the question: what's important to the seller? That's the key now from there. Obviously, having a nice letter written about the buyer. Are they a couple? Are they single do they have a puppy whatever? It is to add some of that emotion, right to bring that sort of right, brain mentality to the seller, who's. Looking at all of these offers and saying well price price price price: oh, but that's just like us when we bought this house right, create that emotional experience with a photo.
How about a video from the family or the individual to try and warm up their heart? A little bit and again separate your offer from the competition now, at the end of the day, it's all about the net to the seller. If you're writing clean offers and you're thinking to myself, how can i make this a no-brainer, the agent's going to love it? The seller has to love it, maybe just maybe, by offering some unique benefits to the seller. Maybe it isn't just highest price. You've seen it before a little bit off the highest price, but everything about the offer and the benefits to the seller were on point and you get the deal.
So i'm going to give you a few remember state by state country, by country, province by province. You got to pay attention to all your local rules, obviously, but here's a few you ready what. If, for example, you offer to pay the sellers taxes right, that's a good one. What if you offered the seller free rent back so they now can close, get the cash and go buy their next house.
That's a compelling offer. I wrote down what have you offered to cover their moving costs right, um, paying their title fees? I wrote down like there's a bunch of things you can do the thing you got to be mindful of the thing you got to be mindful of, is you know, list out every possible thing, that's a benefit to the seller. That doesn't increase the price, so you can get the deal closed and funded. Does that make sense now, hopefully your mind's now saying yeah, you know you're right, it's not just price. I got to think about the seller. What else can we do? How do we make it a benefit for them? The last one is about positioning with your buyer, whether it's on their initial offer and or it's in the counter situation, if you're lucky enough to be in that situation, it's called the ladder strategy and what we're trying to do is ladder up on price, your buyer, To find out what is the highest they're willing to go to not lose the house, so i'm talking to tristan and steph tristan's behind the camera - and i say: okay tristan, you guys offered 4.99. They came back at 5 10.. Are you willing to lose this house for 510 000.? Well, gosh.
You know, i don't know right they're going to wrestle with it and they say: okay, we're in before you just say: okay, that's it! Let's go. I say okay, but let me ask you this tristan. What, if they counter back at 5 15., are you guys willing to lose this house at 5 15? Are you guys willing to lose his house at 5? 20.? Are you willing to lose his house at 5? 25.? Oh gosh tom, i mean you know the payment. This that you know our emotional state, okay, you know what you're going to discover.
Everybody has that highest possible price they'll go to, and in this uber competitive environment. We want to make sure that your buyer understands hey. You might have to push the envelope on price and the only way we can get them. There is baby steps so think about it.
If you're talking about a two million dollar property, you're, probably not talking five and ten thousand dollar increments, if you're talking about a hundred and seventy five thousand dollar property, maybe you're only talking about two thousand dollars or a thousand dollars or twenty five hundred dollars. But laddering up your buyer mentally to say: are you willing to lose the property at this price? How about this price? How about this price to find out what you can do to go back to the selling agent and say we know we can do it here? Let's close, so, in summary, this is one of the biggest challenges we hear all day, long on the streets in our facebook pages on coaching sessions. My hope is now you're thinking just a little bit differently and a little more strategically to help your buyers ultimately win. More deals, let me know what you think and by the way, what else are you doing in your town? What else are you throwing in right? Put it in the comments on facebook or youtube or instagram or wherever you are, and let's help everybody win at this game.
All right, we'll see you soon. Remember always your strategy matters, and now, more than ever, how you write your offers is what absolutely rules you.
What are some tips and tricks to get your offer accepted?
"Love letters" are a fair housing NO-NO! All of the other tips are super helpful though.
We need to be careful about fair housing laws.
I disagree with sending letters and photos of the families. That’s opening up a very ugly can of worms and WE KNOW these results VARY negatively based on things outside of the buyers control……like where they were born, the color of their skin, family makeup…..
This is full of potential FAIR HOUSING VIOLATIONS!! DO NOT write letters, send photos, or videos that could put the seller in a position of making a decision based on a bias that could be a protected class.
What a great video. Number two has got me thinking on my next offer. Took a lot of way with number two in this video. Good stuff. Thanks Tom.
Seriously who would dislike this video?
How about find a home that suits your own family's needs.
Make sure that the home is at a realistic affordable price for the amount of income you make.
Find an agent that gets things done and works for you. Communication is key. Always communicate. Don't be afraid to say what you're thinking and with that, listen to what they are thinking.
Find a mortgage lender that you feel is in that same ballpark. Make sure they work for you. And absolutely make sure that both the lender and agent communicate as well.
Now, about getting your offer accepted…
..If say hypothetically, that there are already 2 offers. And you love the home, you need it, your family wants it, the home absolutely suits your needs… be competitive, and come in with a bigger offer, or pay such and such over the highest offer.
… In my very own particular situation, I used my VA Home Loan, and found a house with zero offers that was in the realm of what I can realistically afford. I made my offer of what the seller's were asking for. And to include that they pay such and such towards closing costs. And I sent them a 'letter'. A letter saying thank you for the opportunity to make an offer on your home… Yada yada yada… But I made it short and sweet, yet relatable.
My family was the first offer. And by last Saturday the seller's had gotten 4 other offers. The seller's chose us and now we're going through the closing process. The seller's told our agent how much they liked our letter and was the biggest reason why they chose our family to sell to. ♥️
…what to take away… Write a letter to the home seller's on top of the offer you make. To set you apart from the incoming crowd.
One strategy I'm going to start using (I just found this out) is where it says "other terms" on the purchase offer, I put: "buyer to pay $1000 above every other offer up to X amount" Sounds like it could work. ( :
Great content Tom! Incredible insight 👏🏻
Make the entire downpayment the EMD. It will get the sellers attention for sure. We had one sale in our market, a $2 million sale. Buyer was all cash. The EMD? $2 million. Yeah, they won
Loved this Tom, our market here in the Sierras of CA is crazy right now, and most of our agents are very willing to discuss seller situations, which I've found to be THE Best way to find the WIN-WIN. With that knowledge, I find having frank conversations going in with the buyers, and sellers alike, preparing them for the negotiation process and finding their limits has helped get offers accepted and the deals closed.
Love it. Thanks Tom.
I inform my buyers that every seller is in a different place in life, and that typically determines the outcomes. Every home on the market isn't due to a happy family upgrading! There is no one size fits all, however, net is the gold standard. Try and contact the listing agent to do some recon on the seller. I've closed most of my transactions on the phone with the other agent! Why offer to rent the house back to the seller if that doesn't meet their needs? As an agent, we should already be aware of our buyer's position in order to guide them effectively in structuring an offer. In this market it's tough. Having well qualified clients increases your chances of securing a home for them. Tom's ideas may work on the perfect seller, but at the end of the day the seller wants to put more money in their pockets.
We have a formal "escalation clause " that will allow the buyer to bid in increments up to a ceiling price BUT with proof from the selling agent that there was another bid.
Maybe the best strategy is emailing the Highest and Best offers directly to the seller and bypassing the listing agent. Let the seller decide what is the best offer for them, not the listing agent. Level the playing field for everyone and bring transparency to "representing the best interest of my client."
Thank you for great video!
I always try to call the listing agent and get as much information about what the seller wants as possible. Often times they don’t answer. I love the idea of texting them a video asking the question. A great suggestion TF.
5% or even higher EMDs are a winner 🏆
On the laddering up strategy, most people can't even think in five or six figures, meaning they don't really get the difference between 510k & 520k, especially when it's amortized over 30 years. It'd probably be more helpful to have an amortization schedule in a spreadsheet that automatically updates the payment at different prices. I don't know if I can't afford 520k, but I can start to think about a 2,220 vs. 2,260 monthly payment against my monthly income. I routinely put together amortization schedules for my business clients considering financing options. It's always the best way to help them budget the true cost of financing.
Our market in Charlotte just like this. We have used 2 of the strategies here, adding a video to accompany the letter sounds great. Possibly offering to add value to the seller by paying the taxes, closing cost etc is new and genius!!
Spoken like a true veteran.