Catch the Seller's Attention Without Overpaying.

Offering more money than the home is likely worth came into our market via the escalation clause a few years ago. As I previously wrote, the typical clause was a watered down version of a true promise to pay more than someone else, but it did serve its purpose of catching the seller’s attention. More often than you might think the seller’s attention drifted when they looked closely at the clause and discovered more money might happen, but at the cost of more uncertainty, greater risk, and some long days waiting.

What happens when we pay more money for a house than the house is worth? We spend our equity before we earn it. Paying $275,000 for a $250,000 house and using $30,000 as a down payment might leave you negative equity. That’s a tough way to begin ownership of an home and an unwise way to make an investment.

Fortunately, when working with agents who know how to construct a custom contract to present your full ability you have more than money to use to catch the seller’s attention. We use the offer to appeal to the seller’s desire for security and safety. A sure thing at a fair price has a better chance of being accepted than a high price with high risk and lots of uncertainty.

It sounds easy enough. And yet, it remains an uncommon skill. Essential Real Estate is created to customize offers for client and make the contract terms work in their favor while being appealing to the seller.

Author: Tom Meyer, Owner-Broker, Essential Real Estate, LLC Madison, WI

There is nothing difficult about real estate. The home equity you begin with when you buy, and end with when you sell is directly related to the real estate transaction choices you're given.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.