buyers agents

In a competitive market, buyers often wonder why their offers are continually not accepted. One thing that buyers must understand is that the “cleaner” and more competitive the offer is, the better chance they will have of getting their offer accepted. When a buyer’s agent submits an offer, it is equally important that the offer does not contain ambiguous language. Most certainly, however, the offer needs to appear to be one that is based on a genuine desire to go forward with the purchase barring any unforeseen events.

We received an offer recently on one of our seller’s homes that stated the following,

“NOT WITHSTANDING ANY OTHER PROVISION TO THE CONTRACT, PURCHASER SHALL HAVE NO OBLIGATION TO PURCHASE THE PROPERTY AND NO TRANSFER OF TITLE TO PURCHASER MAY OCCUR UNTIL COMPANY HAS PROVIDED PURCHASER AND/OR SELLER WITH A WRITTEN DETERMINATION ON THE BASIS OF A FEDERALLY REQUIRED REVIEW AND AN APPROVED FOR RELEASE OF FEDERAL FUNDS THAT PURCHASE OF THE PROPERTY BY PURCHASER MAY PROCEED SUBJECT TO ANY OTHER CONTINGENCIES IN THIS CONTRACT OR MAY PROCEED ONLY CERTAIN CONDITIONS TO ADDRESS ISSUES IN THE ENVIRONMENTAL REVIEW SHALL BE SATISFIED BEFORE OR AFTER THE PURCHASE OF THE PROPERTY. ENVIRONMENTAL COMPANY SHALL USE ITS BEST EFFORTS TO CONCLUDE THE ENVIRONMENTAL REVIEW OF THE PROPERTY

DEPOSIT FUNDS OF $XXXX ARE REFUNDABLE TO BUYER IF TRANSACTION FAILS TO CLOSE.”

At best, such language added into the offer to purchase was not only absolutely ambiguous and confusing, there was an element of absolute non commitment on the buyers part. When an agent includes a ton of amateur legalese and to top it off also includes a clause that basically creates an absolute sham of an offer because the buyer really does not have to make any type of real investment in the property whatsoever and can walk away at will.

Every Buyer Deserves A Chance To Get Their Offer Accepted. Every buyer deserves an agent who will look out for their best interest while at the same time craft an offer that will actually have a chance for consideration by a seller. Working with an agent who knows the art of crafting a winning offer and the art of negotiation can be the difference between simply submitting offers on homes or actually becoming a homeowner.

Your “Saavy Negotiating” May Cost You Your Dream Home

Most buyers have an idea of what their dream home might look like and the price range that they would be comfortable in more or less. This is a wonderful start to the home buying process. With a pre-approval letter in hand, you set out to find your Realtor to find just the right home. Once you find the home that you wish to put an offer in on, it becomes imperative that you remember that if you have hired a competent Realtor that you trust, then listen to their advice. Unless you are a full time investor, it is most likely that your Realtor has negotiated far more contracts on homes than you have.

Realizing that as a buyer you have certain ideas on what price and terms you would like to ask for, it is in your best interest to heed the advice of your Realtor when it boils down to the “nitty-gritty” of the negotiations. If you find yourself in the midst of Counter Offers where your offer was not accepted at face value and they have proposed a different set of terms, conditions, etc. remember that you must decide what your must haves are versus the non-consequential issues. Sometimes buyers get caught up in “the gotta win” syndrome and lose sight of the bigger picture. When this happens, the buyers “saavy negotiating” may cost you your dream home. Why? Because believe it or not, buyers and sellers alike often lose their objectivity and begin negotiating off of emotion instead of sound, prudent facts.

For example, I recently dealt with buyers who after a year of searching for their perfect dream home locate a home in pristine condition that was well within their price range. After days worth of mulling over whether to submit an offer and then numerous days of offers and counter offers the seller agreed to almost everything that the buyer wanted. There was still some negotiation on the purchase price. In the end the buyer actually wanted to negotiate a lower price on the house over a difference of a $20.00 a month payment. No matter how much counsel this buyer received from the lender or myself, they became stuck like glue to this $20.00 a month. Seriously! Well you can guess what happened to that dream house, can’t you?

This “saavy negotiator” shot his own self in the foot. Do yourself a favor, hire a competent Realtor and then LISTEN! Don’t get in your own way of success.

Disclaimer- All information contained herein is deemed reliable but not guaranteed. You are advised to consult a reputable attorney for all legal advice or a reputable tax advisor.