Put Your Best
Foot Forward
This is an old saying dating back to the 1600s, but its original use has been lost to history. Over the centuries, it has become synonymous with making a good first impression. This phrase has application in today’s real estate market as well. By now you have heard how robust the real estate market is across the country. Homes are selling quickly with multiple offers. Some buyers get discouraged when their offer is not accepted and others go to great lengths to outbid competition. While common sense suggests the highest priced offer should win the day, our experience has shown that is not always true. We have encountered several instances where a lower all-cash offer beats a higher priced offer with a financing or home sale contingency. Obviously, the all-cash offer is attractive because there are fewer contingencies; in essence, it is more of a “sure thing”. Here are a few ways that you can “put your best foot forward”: Offer the highest price you are willing to pay. This seems almost too obvious, but some buyers want to test the seller’s reaction and maybe get a better deal. Up until this past year, that was a reasonable thing to do, but not today. You will most likely get only one chance to capture the seller’s attention. Come in too low, and you probably won't get a second chance. Offer larger than usual earnest money. This technique makes you look like a very strong and committed buyer without changing the purchase price.
The Bar Association recommends earnest money of at least 5% of the purchase price. If you are able, why not make it 10% of the purchase price. Eventually that deposit is applied to your down payment, and it could be the one difference between you and other competing buyers. Write a “clean” offer. It is not uncommon for a buyer to ask a seller to include some item of personal property and/or ask them to pay for a home warranty. While both of these items are still available, I propose that an offer without these items will help the seller focus on the merits of your offer. Bring a mortgage loan pre-approval letter. We are trying to convince the seller that your offer is solid and that it will close on time. Not all mortgage pre-approval letters are created equal. Make sure you get your letter from a respected local lender. All too often, we see mortgage pre-approval letters from internet lenders who have not verified credit, employment, debt, etc. These letters are not reliable and sometimes lead to unanticipated surprises and delays. A letter from a respected local lender gives the seller and their broker confidence in your offer. Contact a Gambino Realtors broker to learn about other useful ways to help you "Pur your best foot forward."
GAMBINO REALTORS HOM E GU I DE VOLUME TWO ISSUE FIVE | 2021 Publisher: Gambino Realtors Editor: Kathy Heeren-Ellis Design: Sarah E. Diamond Photo Editing: Derek Droessler The Gambino Home Guide is a presentation of properties for sale in the Northern Illinois region. Since 1923, Gambino Realtors has navigated buyers and sellers through real estate transactions. www.GoGambino.com 3815 N. Mulford Road Rockford, IL 61114 815.282.2222 5330 Williams Drive Roscoe, IL 61073 815.623.3333
Jonathan R. Krause President Gambino Realtors www.GoGambino.com | 3
