And it was completely avoidable.
Jennifer Nelson shares about the critical difference between a cash offer and a financed one.
Do you know the difference between a cash offer and a financed offer?
It might sound like a silly question, but let me explain because based on a recent transaction, I observed first-hand that there is definitely some confusion over this.
I was a part of a recent transaction, one in which the listing broker was alerting me to the fact my client came in 2nd place in a multiple offer situation.
I, of course, asked some questions about the details and was told that the other offer was cash and, (get ready for it) was willing to make up the difference in appraisal.
Do you see the problem here?
Cash offer = no appraisal
When someone pays with cash, there is no appraisal.
So this broker was confusing a cash offer with a waived, financed offer.
All this to say, she lost her client about $25k because she didnt know the difference. I knew what my client was willing to offer, and coming in 2nd place in a multiple offer scenario was great information to have.
I was willing to go to bat for my buyer in order to make a better offer, but the listing broker just couldn’t hear me. She didn’t know this critical difference.
Are you well versed in the contracts in our industry? Do you know about the differences so you dont lose your client money?
At Metropolist we offer weekly trainings to help both the new in the industry and the old to be contract confident.
I just recently had a 15 year veteran tell me they had never heard of the earthquake strap law that was added last year.
It is these kinds of things that set you a part and help you be more successful.
Your clients may never know you didnt do the best for them, but dont you want to? Make it part of your business to be educated.
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