"How Can We
Help You?"
The Real Estate Client
The Right Way To Buy A House!(Part 2 of 3)
James Patton, CRS
Continued from last month:
The Gladfines knew their offer of $270,000 was low, but they followed my advice that they should begin by making an offer "you would love to have accepted." We did not think the seller would take it (though we were quite willing to be wrong!). While right about this, we learned some important information. Here is what happened:A Counter And A New Offer:
(1) Seller 1, the Hapsails, presented a counteroffer to the Gladfines, the buyers, of $285,000 with minor changes. (2) The listing agent (seller's agent) stated the counter price was firm, and that perhaps the Gladfines should consider a different house. (3) The Gladfine's weighed accepting the counteroffer and looking elsewhere. (4) I urged the Gladfines to wait at least a day since the lender was about to give them formal "pre-approval." They could then submit a tantalizing new, slightly higher offer virtually "all cash" and no longer subject to a loan. (5) They waited, got approval the next day, and offered only $278,000 -- this time the offer was all cash, subject to appraisal and title report, and backed by a lender guarantee.Then, A Chain Of Events: (1)
Seller 2 was Mrs. Lee, the elderly widow selling the little house Mr. and Mrs. Hapsail wanted. She needed cash to buy into a new retirement community. Mrs. Lee was considering a "full price" offer from a buyer wanting time to sell another property -- (what if it never sold?) -- she needed speed, and for speed, she would take less (time is money). (2) The Hapsail's agent showed that by accepting the Gladfine's latest "all cash" offer, the Hapsails could also offer cash (no seller risk on buyer not getting a loan), solve Mrs. Lee's problem, and get her property at a discount -- making three groups happy in the process. Although a loan was directly involved in his sale, the seller, Mr. Hapsail saw that through "pre-approval" plus down payment, the Gladfines actually had "all cash" (again, no seller risk on buyer not getting the loan). Since the Gladfines could close and give him the needed cash fairly quickly, he would take their offer -- although it was $7,000 below his bottom line! Escrow was opened on the "low" offer, which now was a binding contract.The Happy Buyers
-- (the ones with the wisdom to get written pre-approval *) flew home to the mainland while the appraisal was done. Mr. Gladfine returned in two weeks with his wife's power of attorney for signing and finals details, as the "walk through" inspection. (3) In the meantime, the sellers Hapsail, secure their sale would close, offered Mrs. Lee a fair but low price for the little house -- and something very important to Mrs. Lee -- all cash and a fast closing.(4) Mrs. Lee accepted immediately.
She did not even make a counter offer through her agent, since...(Part 3 continued next month)*Note: Pre-Approval and "Pre-Qualification" are not at all the same.
Tip: Solve the other side's problem and get what you want.
James Patton, CRSToll Free (800) 997 - 8701
Call Today To Get The Process Started
©2003 Coco Isle Realty
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