We received over 10 offers on House #12 in one week. All of them over our list price. That amazes me, there is just a huge lack of inventory in this market.
Our escrow price is about 50,000 over any of the other good comps, so I am wondering if we are going to have appraisal issues. There is one property that might fit, that is where we need to be. The appraiser we use says he can use other offers in lieu of comps, which surprised me. He still needs a couple “real” comps, but multiple offers go a long way in increasing the value. I will keep you updated on how we do there.
The hardest part is to decide what buyer to work with. Go with the highest offer? Go with the biggest down payment? Go with the most experienced agent? Go with the buyer who has the most pre-qualification finished?
We have sure learned a lot with the properties we have in escrow. Cash is KEY! The guys who can barely scrape the 3.5% needed to close seem to always have issues. They typically have lower credit scores.
Experienced agents really help. On one of our properties, the agent presenting the offer was a first-time agent. It really caused huge issues, paperwork was done wrong, his expectations where unrealistic.
In a seller’s market (which oddly enough) it is right now. Due to a lack of available inventory. Get a buyer who has as much of the pre-qualification paperwork complete. If it’s an FHA offer, have them send the Desktop Underwriter approval. You want more then the standard loan pre-qualification letter, because pretty much anyone can get one of these made.
With the new appraisal issues, we actually prefer FHA offers versus conventional. FHA offers allows the agent to pick the appraiser where as with conventional and VA offers the appraiser is randomly assigned.
The key is too be patient, I have negotiated with weak buyers, put the property into escrow and the next day I got a much stronger offer. In one case we put the property into escrow at 179,000 to a VA loan and I got a cash offer of 175,000 the next day. It was too late to pull out.