“I KNOW JVM; THEY’RE AS GOOD AS CASH”
That is an exact quote from a listing agent to a buyer’s agent, after the listing agent saw our pre-approval letter. It is something we hear often, and it is something we tout often in our marketing.
REDFIN COMPARED STRATEGIES ON THOUSANDS OF OFFERS
Redfin evaluated thousands of offers in order to compare which strategies worked the best for getting offers accepted. The results are set out in the table below, and the full article can be found here.
Cash is obviously king, but most buyers don’t have “all cash,” as everyone knows.
Hence, buyers should make sure that their lender is “as good as cash.”
What Makes a Lender as Good as Cash:
1. 15 Day Closes (or faster if necessary)
2. 5 Day Appraisals from local appraisers
3. Pre-underwritten pre-approvals
4. Very short or no loan contingency
5. Stellar reputation backed by stellar testimonials
6. Willingness to call listing agents to explain the above in no uncertain terms.
Effectiveness of Strategies – Summary of Redfin Data
|Rank||Strategy||Improves a Competitive Offer’s Likelihood of Success by…||Improves a Competitive Offer’s Likelihood of Success in the Luxury Market (Top 10% by List Price) by…|
|#2||Waived Financing Contingency||58%||76%|
|#3||Personal Cover Letter||52%||No Significant Gain|
|#4||Pre-Inspection||No Significant Gain||No Significant Gain|
|#5||Waived Inspection Contingency||No Significant Gain||No Significant Gain|
Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646