Loft Property Tactics and Strategies
One of the most overlooked opportunities in real estate for buyers and sellers are back-up offers.
Because listed properties under contract and pending sale properties lose visibility, they are too often overlooked because buyers can’t see them as easily. Currently, more than 10% of these properties fall out of escrow (sometimes up to 25% fail), and most of those have no back-up offer at all. Wasted opportunities! By placing offers and back-up offers on several properties, home buyers increase their chances of getting a great deal on an amazing loft or condo. In California, buyers are generally safe to place several offers in a short period of time because most offers expire by default within three days, plus the buyer usually has contingencies, which are opportunities to cancel without risk of losing the buyer’s deposit. Buyers usually don’t want to go into escrow with two properties — so, as soon as a buyer receives an accepted offer, they generally want to send cancellation notices for any other offers out that might still be valid. #realestate #backup #offer
It can certainly be a big disappointment when a prospective buyer sees the ideal home go from active to pending. Rather than giving up, the buyer may still place the highest and best offer on the property. A very good back-up offer can actually increasing the chances of the first accepted offer falling out because it gives the seller leverage to place more pressure on the first accepted buyer by negotiating strictly, and by not making requested repairs for the first buyer. A back-up offer makes things happen, while failing to place an offer does not.
In Downtown Los Angeles, many amazing lofts have financing difficulties, especially if the buyer and seller are both using out-of-area agents who are not familiar with the loft lenders that are often necessary for a successful transaction. A back-up buyer with cash or a good loft lender can step right in, without missing a beat (sometimes with expensive inspections taken care of already).
While it’s usually best to place an offer on a pocket listing or active listing first, back-up offers should not be neglected. Often the accepted buyer simply gets cold feet, is unprepared or is otherwise unsuccessful. The serious back-up buyer gets the awesome property!
Back-up Opportunities
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Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.