How to overturn other LOIs
Any properties that are great are thought to be great by others too.
When a great looking property pops up, there will be many LOIs turned in and you may lose a chance to purchase it. Usually LOIs should be prioritized in order. If your LOI is not ranked in the first place, how you move it up to the top is really important.
The ways to do this is “Suggest something attracting to both the seller and the real estate agent”.
Here are main ones below.
Turn in a LOI for the full amount as the seller wishes to sell for
Make sure you turn in your LOI stating the full amount that the seller hopes to sell for. There may be a chance that your LOI would be treated better than the ones with a limit price.
No Loan Covenant
In many times people put “loan covenant” condition on LOIs or sales contracts in case loan process won’t go through so that they can get out of the contract legally with no penalty. To stand out you should not put that condition on yours. This shows that you are confident that you can get financing or purchase in cash. Signing the sales contract even though the loan process didn’t go through would make your LOI prioritized. For the seller, you would be the most likely to sell the property to. Or at least he knows he can get a deposit if the buyer would like to cancel the contract.
Purchase in Cash
This is the most attractive way to the seller. Purchasing in cash means that the final settlement for the property is promised. Unlike using a loan, all the steps towards the settlement would be smoother and considered favorable to the seller and your agent.
Exemption from warranty against defects & purchasing as is
Sellers usually do not want to be bothered by anything related to properties that they sold before. By exempting from warranty or agreeing to purchase a property as is would ease their worries.
Consultation fees are sort of an extra bonus for your real estate broker. This needs to be paid as under different account name since the Building Lots and Buildings Transaction Business Law regulates the maximum fees that a real estate company can receive. This can be really effective.
Extra on sales price
You would tell the seller to buy the property for the higher price than the others. A chance that your LOI gets prioritized should increase since the seller wants to sell as high as possible.
Sending a letter
This may be effective to the elderly who are emotionally attached to their properties.
Writing “I will keep/manage the property nice and well if I become the next owner of it” would change your impression better to the seller.
Paying a bonus to sales person directly
This bonus is paid to your agent under the table. It should be your last resort when you want a specific property so badly. Give him cash without issuing a receipt for it.
There are the main ways to possibly overturn other LOIs.
Firstly you should get close to the best sales person. Usually a sales person at a real estate company decides who to tell the seller about. The worst case, your LOI may get stuck at the real estate company and never sent to the seller.