This is what destroys your leverage
Fast forwarding from our conversation on leverage on Monday.
Many of us are fortunate to have some leverage when it comes to buying a home. Like the ability to have a 20% down, flexibility in the move in date or an all-cash offer.
All of these things are great when you are buying a home and even better when it matches with the needs of the seller.
Don’t assume that your flexibility is a benefit to every seller because they may be focused on something completely different.
So before we start flexing our leverage muscle, we need to find out what kind of offer the seller is looking for. That’s rule number one. Without this knowledge, we can’t properly position our offer to make it as attractive as possible to the home seller.
The second rule involves the use of our leverage. It’s best when you can keep the rest of the offer as simple as possible. Most people want to use their leverage to gain the best price. And that’s a good strategy, but it’s not the only one.
When you ask the seller to bend to many ways, you water down your leverage and it makes your offer less appealing. This is a competitive market where the difference between winning and second place is hard to see.
Speaking of a competitive market, here is rule number three. The more competition you have, the more likely it is that someone else has the same or better leverage. Like number two, this problems erodes your leverage. Which makes creating the perfect offer more important than ever.
And to write the perfect offer, you need to understand what makes the other side tick.
We listen well and ask the right questions to gain insight into the mind of the seller so you can have the best opportunity to write that winning offer.
If you are getting close to taking the next step, hit reply. I’d love to talk to you about it.