In a lengthy buyer's market like the one that currently exists in housing, sellers sometimes need to come up with new and creative ideas to get their property sold. Reverse offers are becoming more popular. This article will discuss reverse offers and give some hints for using this idea to its best advantage.
The usual way home sales are made is that an interested buyer makes an offer to the seller after having looked the house over. In a reverse offer the direction is switched. That is, the seller goes back to an interested looker and makes them an offer to buy the home. There are a couple of ways that potential buyers can be approached with a reverse offer. One method is to have your real estate agent contact all the people who have seen the home and make each of them the offer.
Needless to say it does not make sense to reiterate the same offer all over again that the potential buyer was aware of when they looked over the property. Some other incentives need to be added to make the deal look more interesting. One way to do this is with a lower price, but other enticements can be used as well, such as paying the closing costs for the buyer, or perhaps buying down their mortgage rate a bit. Other tangible property could also be put into the deal, such as an automobile or a large screen TV, for example.
A couple of things should be kept in mind if you are considering making a reverse offer.
In order to create some sense of urgency in the mind of the buyer, make the reverse offer valid for just a short period of time. One, two, or at most three days would be appropriate. Also, if the offer is being extended to more than one potential buyer, let everyone know that others will receive the same offer and that the person who gets the home will be the first one who responds.
Secondly, if there was a particular buyer who seemed to like the property but never made an offer themselves, have your agent contact the agent for the other party and ask what it was specifically that caused the buyer to back off. In that way you have a good chance of addressing the specific issue that caused the person to shy away. Maybe there is something in the house that can be fixed or changed without too much effort and cost that you can promise to do if the deal were to close.
This tactic can work well for sellers who are facing a lot of competition from other similar houses selling for about the same price, or from foreclosed homes in the neighborhood. Foreclosed homes come with lower price tags, but they also come with risk. If you can show that there are no unseen problems in your home and that you are eager to sell and are creative enough to come up with a new idea or two, you may just help the buyer come to a decision.
The usual way home sales are made is that an interested buyer makes an offer to the seller after having looked the house over. In a reverse offer the direction is switched. That is, the seller goes back to an interested looker and makes them an offer to buy the home. There are a couple of ways that potential buyers can be approached with a reverse offer. One method is to have your real estate agent contact all the people who have seen the home and make each of them the offer.
Needless to say it does not make sense to reiterate the same offer all over again that the potential buyer was aware of when they looked over the property. Some other incentives need to be added to make the deal look more interesting. One way to do this is with a lower price, but other enticements can be used as well, such as paying the closing costs for the buyer, or perhaps buying down their mortgage rate a bit. Other tangible property could also be put into the deal, such as an automobile or a large screen TV, for example.
A couple of things should be kept in mind if you are considering making a reverse offer.
In order to create some sense of urgency in the mind of the buyer, make the reverse offer valid for just a short period of time. One, two, or at most three days would be appropriate. Also, if the offer is being extended to more than one potential buyer, let everyone know that others will receive the same offer and that the person who gets the home will be the first one who responds.
Secondly, if there was a particular buyer who seemed to like the property but never made an offer themselves, have your agent contact the agent for the other party and ask what it was specifically that caused the buyer to back off. In that way you have a good chance of addressing the specific issue that caused the person to shy away. Maybe there is something in the house that can be fixed or changed without too much effort and cost that you can promise to do if the deal were to close.
This tactic can work well for sellers who are facing a lot of competition from other similar houses selling for about the same price, or from foreclosed homes in the neighborhood. Foreclosed homes come with lower price tags, but they also come with risk. If you can show that there are no unseen problems in your home and that you are eager to sell and are creative enough to come up with a new idea or two, you may just help the buyer come to a decision.
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