How To Avoid The Top 5 Real Estate Contract Killers

Welcome back to America's #1 Daily Podcast, featuring America's #1 Real Estate Coaches and Top EXP Realty Sponsors in the World, Tim and Julie Harris. Ready to become an EXP Realty Agent and join Tim and Julie Harris? https://whylibertas.com/harris or text Tim directly 512-758-0206

Negotiating has become more complicated now that the market has shifted. Currently, there's a mixture of homes that are selling quickly, with competing offers, as well as homes that are taking longer to sell, with perhaps only one offer.

This means you've got to sharpen your skills if you want to win every time!

Mistake #1: Lack of Communication from both Buyer's Agent and Listing Agent. If you want to win, you need a meeting of the minds. The definition of negotiation is the reaching of a mutual agreement that all parties are satisfied with. You have to actually talk to each other to make this happen!

IMPORTANT: Join #1 Real Estate Coaches Tim and Julie Harris's Premier Coaching now for FREE. Included is a DAILY Coaching Session with a HARRIS Certified Coach. Proven and tested lead generation, systems, and scripts designed for this market. Instant FREE Access Now: YES, Enroll Me NOW In Premier Coaching https://members.timandjulieharris.com/

Example 1: Listing agents, if you want to receive offers that are easy to say 'yes' to, put the desired terms into the agent-to-agent comments in the MLS, and/or actually call all those buyers' agents back who haunt you looking for the details that will help them win!

Example 2: Buyers agents: actually read all comments in the MLS and counsel your buyers to comply with as many of the terms as possible, if they intend to actually win!

If there are comments, you must find the listing agent and ask them, other than price, what will it take to win? Does the seller want a specific closing date or a lease back, or to keep the fancy chandelier? Find out and see if you can deliver a contract they'll accept.

Mistake #2: No lender's letter or proof of cash, a weak lender's letter, or a boilerplate letter. If your buyer has financing, their lender's letter needs to show ideally that they are loan-committed, or at least pre-approved. It needs to state that their ratios, credit, employment, and downpayment are all adequate and verified. Additionally, the lender should call the listing agent and 'vouch' for the buyer's ability to close.

*If you are a Premier Coaching Member, simply use your 'ultimate addendum' to avoid this mistake!

Mistake #3: Not being specific about the seller's concessions. This ranges from asking for a specific type of home warranty for a specific price, to asking for thousands of dollars towards buyer's closing costs.

The first issue is easy. Check the box on the offer stating the buyer wants a home warranty, then state which warranty, that it's for one year, and will cost $X.

The second issue is more tricky. If you're asking for the seller to contribute $5,000 towards buyers closing costs, state (after speaking with your buyer and their lender), what those funds will go to. Buying down the interest rate, paying prepaid costs like taxes, homeowners insurance and prepaid HOA deposits are all appropriate. Ask for a good-faith estimate so you can be specific. Note: some lenders will inflate costs when they know the seller is contributing thousands to the deal.

Failure to be careful when you're dealing with dollars will almost always bite you in the butt prior to closing and guess who's going to pay the price if there's confusion!

IMPORTANT: Join #1 Real Estate Coaches Tim and Julie Harris's Premier Coaching now for FREE. Included is a DAILY Coaching Session with a HARRIS Certified Coach. Proven and tested lead generation, systems, and scripts designed for this market. Instant FREE Access Now: YES, Enroll Me NOW In Premier Coaching https://members.timandjulieharris.com/

TIME CODES

00:00 - Intro
01:25 - Past market
03:21 - Lack of communication
07:36 - Hot buttons
12:57 - FOMO
17:19 - Ultimate addendum
21:27 - Home sale contingency
26:34 - Financing falls apart
35:08 - Like and subscribe