SFR offer writing 101:
Just got an offer for $500K on a property where I’m asking $550K
I look at the pre-approval letter. It’s for up to $565K
When buying, insist that your lender adjust pre-approval letters to match your offers. Don’t show all your cards.
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Replies
@moseskagan
That’s an interesting perspective. But then again, why come in below ask?
Below ask, I’m likely to drag my heals on a response (zero urgency) in an effort to shake another offer out
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@flynn_bob
maybe their loan officer doesn't work weekends. It's better to take a couple weekdays off & work weekends for LOs in this market.
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@flynn_bob
how is that relevant in a market where the buyer is writing their highest and best?
how many sellers counter based on exposure to this information as opposed to taking the highest offer in hand?
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@flynn_bob
More context is needed, is this the first weekend on the market, or has the property been languishing for months?
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@flynn_bob
Hmm, I thought if you’re buying a personal residence you want to show a high preapproval to help you win bidding wars.
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@nw3
Firstly to clarify this is a quadplex so a little different but
My take: come in higher initially
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@flynn_bob
I show over-qualified pre approval letters to listing agents all the time. They want to see how qualified your buyer is, especially in multiple offer/seller market conditions. Never had someone try to counter me at the pre-approved amount.
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@flynn_bob
Today I skipped an open house for a property I really want for Airbnb but the listing agent insists on seeing a preapproval for entrance and I have one but it’s for double the list price and I would NEVER show that
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@flynn_bob
Agreed, but just because they can afford up to that amount doesn’t mean that they will pay over market price if they thought $500k was market price for the home. Were there any other offers?
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@cajhomes
The broader point here is you don’t want to play your hand
If I know what you can afford, I’ll exploit that information
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