You are trying to explain to your client that they will make their money back, but it feels too real to them. It is real.. and it’s a lot of money. But if they knew they would make the amount they bid over back in 6 to 18 to 24 to 36 months, would they be more willing to go all in? In this market, buyers can not be afraid. Arming them with a Bid Over Asking analysis is HUGE. I had a Realtor ask me if I could do one of these for every listing she has.. YES I CAN! I can also run one of these very easily for every price point and/or house you are looking at. It takes about 3 minutes.. so if you think you are bothering me, your NOT… let’s do everything we can to get your buyers “all in”.
You are trying to explain to your client how they can come to the table with little to no extra money if the appraisal comes in low. Would having a flyer or visual help? … we’ve got you! Download this flyer from our FB Agent Ignite Group. Paying more for a home is hard, having the appraisal come in low is a big blow. Right now we are seeing appraisals come in strong… but the risk is what keeps buyers from jumping in. Take the risk away by offering solutions. Even with minimum down, there are options.. we can switch to a down payment assistance program. Being quick to change directions is what saves deals and keeps your client excited about the closing table!
What if You Could Waive Loan Availability AND Appraisal Objection?
Okay, first I have to start with defining Loan Availability. We’ve been getting contracts where agents are leaving this or the Loan Terms Deadline blank or thinking of them backwards. I did not take the contracts class.. so am not assuming to teach you contracts. HOWEVER, I know the Loan Terms and the Loan Availability are where you and I come together to protect your clients earnest money. The example below is on a contract we received on 1/26/2022, making the earnest money hard due to the loan extremely fast…
Loan Terms Deadline is where the buyer agrees to the terms of the loan.. i.e. it’s a 30 year fixed at 3.25% with no prepay penalty with a payment of $X requiring a monthly mortgage insurance of $Y. The terms of the loan. As a lender, I am required to disclose the loan within 3 days of receiving the contract. So really, this deadline could be as little as 3 days after going under contract. We are seeing most dates being a week. Others have told me they try to put this at the end. Your call.
Loan Availability Deadline is where the loan is confirmed as available. The Rueth Team treats this date as the Clear to Close deadline. We want the loan 100% approved by this date. The word “availability” is no longer about not liking the terms, it’s all about is the loan available to this buyer. So, if they lost their job, their hours were cut, a collection showed up on their credit and their score dropped… in those, and a few more, that loan would no longer be available to them. You want this date as close to the closing as possible.Okay.. so class over.. now… how do I waive Loan Availability? You do it with our TBD (To Be Determined) Underwriting! Once your buyer has gone through our TBD underwriting process; I will put an Earnest Money Guarantee sticker on their lender letter and cover up to $5,000 if anything happens due to loan availability (within the circumstances known to us at the time). This gives you two advantages… EM is hard making it look like cash and you can close in 10 days! Seriously.. this is HUGE! Close in 10 days!!
What about the appraisal? Two options… see if it can be waived or rush it. If your buyer is using a conventional loan and putting 20% down or more; our team will run the property BEFORE you put in the offer to know if you can waive the appraisal. Talk about an advantage! If we can’t waive it, we can rush it. The fee for rushing is usually around $250.. a small price to pay for winning the deal!
Bottom Line:
I want EVERY client of ours to win the deal! That’s why I am especially happy to now have a full Spanish speaking team. Every client given every opportunity. Together we can change the trajectory of thousands of lives!
[author] [author_image timthumb=’on’]https://www.theruethteam.com/wp-content/uploads/2020/11/testimonial_image.jpg[/author_image] [author_info]Nicole Rueth has been passionately advising clients on their wealth building and home financing strategies for over 17 years. Her path has been non-conventional and it is a benefit to her clients. www.TheRuethTeam.Com.[/author_info] [/author]
