“The best call I get to make is to let my client know ‘your offer was accepted.’”

Whether helping a buyer or a seller, the mission of the real estate agent is to keep the sale on track. This is no simple matter given the complexities of a real estate transaction.

Coldwell Banker Pacific Properties Realtor/Broker Gary McCarty works with both buyers and sellers, which provides him with good perspective on the process and pitfalls as he moves toward the goal of a successful closing. Here, he outlines some of the techniques that have served him well over the years in working with buyers…..

“For the buyer, the first step is getting pre-qualified with a lender…there’s no point in shopping for a house you can’t afford. With a price cap in mind, we can start working together to locate that home.

“To outline the purchase process I start with ‘fact check.’ Next, I ‘establish motivation,’ then move on to our ‘offer strategy.’ Assuming our offer is accepted, the final phase is ‘meeting contract requirements,’ referring, of course, to all the provisions of the Purchase Contract.

“The buyer tells me what features in a home and neighborhood are most important. I review with them the three major factors they need to consider: size, condition, and location and get them to prioritize which two of these elements are most important. This will help narrow the field and we come up with a list of homes within their price range in geographic areas they prefer.

“We spend time online viewing listings, visit open houses, and preview properties by appointment. I stay on top of new and pre-listings and provide timely information as it becomes available. Eventually, the client says, ‘this is it, let’s make an offer.’ We know how much the seller is asking, but now I check facts to establish market value based on comparable sales in the area, property records which reveal assessed value, how much the owner paid, and clues to the amount of equity they may have accumulated.

“The next step is to establish motivation. I find out why the seller is selling and, if possible, what their plans are. In some cases, there may be flexibility in the sell-er’s time frame…or we may find out that the seller is not desperate to sell and ‘on a fishing expedition.’ The seller’s agent has confidentiality and fiduciary duties to the seller but can share certain information. I also want to establish the buyer’s motivation — are they head over heels in love with the home, or just think it’s OK?

“All this information and more will be gathered before we even write-up an offer. Finally, I can move on to strategizing and structuring the offer. This is a critical step. The dollar amount and special terms will be based on the information I’ve gathered. Our goal is acceptance and avoiding a counter-offer which puts the seller back in charge of the negotiations.

Making a reasonable offer based on my analysis is the key – coming in too low guarantees a counter-offer. Also, how the terms and timelines are written can clearly affect the seller’s response. My offers are also technically flawless so no counter-offer is needed to correct a mistake.

“As part of the offer strategy, I often draft a letter to the seller expressing the buyer’s interest in the home along with some personal details. In a recent transaction I handled, the seller was so affected by this letter that they accepted our offer even though they had received other higher offers.

“There are many things we can do to make our offer more favorable besides price. I often suggest a large initial deposit which sends a message to the seller regarding the buyer’s financial capability and enthusiasm.

“Timelines for contingencies can be manipulated and special terms inserted to make our offer more attractive without giving up anything for the buyer. A lender’s pre-approval letter is also a critical element.

“Of course, the best call I get to make is to let my client know, ‘your offer was accepted.’

“Once accepted and in escrow, we have to get through the home inspections, title report, survey, appraisal…and many legal and technical issues regarding the property. If there are problems along the way or a major defect in the property is discovered, I can sometimes work out an agreement involving a price reduction or credit to the buyer. This is where motivation plays a big role. Let’s say the defects can be corrected for a few thousand dollars, but the seller will not budge on the price or provide a credit. If the buyer is ‘in love with the home,’ they may be willing to proceed to closing based on the original offer rather than lose it by quibbling over a few thousand dollars. At the same time, a motivated seller with a need to relocate quickly may be willing to make concessions rather than see the buyer cancel and have to start marketing the home again.

“The guidance of an experienced Realtor is critical…we develop a sense of what will work in our buyer’s favor yet remain acceptable to seller. With skill, tenacity, and a realistic attitude by all parties, we can overcome most problems and turn that offer into a sale, making another family’s ‘home sweet home’ dream come true.”