Dressing Up

by Doug Love

I received a phone message from a frustrated homebuyer, who was calling about the article I wrote about a frustrated homebuyer.

“The only point you made,” he said, “is that buyers with all cash are beating out us buyers with loans. Duh. We know that. Why don’t you give some constructive advice to help us out instead of just rubbing our faces in it?”

I considered his constructive advice and went on to the next message, this from a formerly frustrated homebuyer who succeeded in buying a house.

“We were so frustrated,” she said. “We made offers on six houses, and lost every one. Then we learned the secret to success. The secret is all about dressing up. Our Realtor dressed us up. There were three other offers on the house we bought. Two were all cash.”

I located that Realtor and asked her what gives with all this dressing up. She looked furtively about and quickly ushered me into her office. In a hushed voice she said she would tell me the secret if I promised not to tell anyone, which I haven’t.

She described the typical situation: A house comes on the market. The house is shown intensively because housing inventory is low and buyer demand is high. The seller receives five offers right off the bat. The seller and their Realtor review the five offers. One is all cash and close enough to asking price, so it’s the winner. The offers with loans are the losers.

Then, she revealed her secret: “I insisted I be given the opportunity to present my buyers’ offer to the seller. In person. Buyers’ agents have that right, but it’s rarely exercised these days. I was persistent and the listing agent made arrangements with the seller. Then the dressing up began.”

The dressing up consisted of: 1) a glowing letter from the buyers’ lender proclaiming the buyers’ qualifications, with assurances the loan would close quickly; 2) a letter from the buyers themselves containing a mini-biography, complete with photos; 3) kneeling before the seller and begging them to take her buyers’ offer.

“Actually,” said the Realtor, “no kneeling; I simply described my buyers in a very personal way to the seller, and expressed their true desire to own that home. The seller reacted favorably, and chose my buyers’ offer over cash.”

I’m calling this information constructive advice. But remember, it’s a secret, so keep it under your hat.