Take my recent experience in Louisville, for example. A home went on the market 24 hours before showings were allowed. My client and I were among the first ones in the home the next day right as it was opened. I was the first to call the listing agent to find out what kind of terms the seller was looking for ideally, and we were the first offer in. It was a clean contract, with no contingencies or special requests. Our closing date was flexible, down payment significant. We offered more earnest money than was required, a lender letter, a personal letter from my client, and all of the signed disclosure the listing agent had uploaded to the MLS. The opening bid was over the listing price, with an escalation clause up to $15,000 over.
We came in second. To an even higher offer price.
Frankly, I was quite disappointed, as was my Buyer, but we knew we had done everything we could. The sellers signed our offer as an official back-up, so the wait began.
The inspection period came and went. Soon after I received a call from the listing agent, informing me that the appraisal had come in short of the agreed upon purchase price of the selected offer. The sellers had agreed to meet their first-position buyer somewhere in the middle, requiring that buyer to come up with the difference in cash at closing. She was unable to do so, but because my Buyer had such a large downpayment she was easily able to step in and meet to the seller's terms.
Had I been the listing agent, I would've warned my sellers about the possibility of this scenario, and counseled them on the pros and cons of each offer. In the end, it's the sellers call, and it can be hard to turn down what appears to be a windfall in price. But having to switch gears in the middle of a transaction costs the seller carrying costs, not to mention causing a delay in their plans to move on. a financially solid Buyer can ultimately save time and money and give sellers peace of mind.
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