Real estate agents were being wooed by would-be home buyers with diamond rings and even a brand-new luxury car. But the gifts weren’t the key ingredient to getting a winning bid on a luxury home.
Here are three things high-net-worth individuals can do to get the winning bid on a house they covet.
Be ready to roll
At the premium level of the property market, fat bank accounts aren’t enough; buyers must be able and ready to put their money on the table immediately.
Dolly Lenz says buyers should “move really quickly” and be ready to close contracts within 24 hours. Doing their due diligence about a property before making an offer would help them be 100% sure about it, which in turn strengthens their bid as well as their position in front of the seller.
Besides liquidity, buyers need to supply key information right from the get-go, including proof of funds and full contact information for themselves and those who will be representing them during the process, including lawyers and accountants. Lack of contact information could raise a red flag against bidders.
Show you really want it
Sellers’ agents will often call would-be buyers for face-to-face meetings to gauge their seriousness about an offer. Showing that you’re very interested in a property at these meetings could be decisive in winning a bid.
“If you are too calm or too relaxed, you won’t get to the finish line,” said Lenz. “When your eyes are burning [for a property], I can tell you really want it.” A heartfelt personal letter to the seller explaining why you are interested in their house could also help close a deal.
Make the seller happy
A contract that fits the sellers’ needs, whether that means they need time to move out after the closing or an all-cash deal, could be crucial.
“The highest bidder with the cleanest deal is going to get the house,” said Dora Puig, a prominent sales agent in Miami-Dade County for whom lengthy inspection periods of the property and contracts with too many contingencies can trigger an alarm about the buyer.
Lenz, who has sold over $10 billion in properties during her 25-year career in real estate, says that many times older owners would want to transfer ownership of their long-time homes to someone who doesn’t plan to tear the house down-and with it their memories.