Dolly Lenz has turned down diamond rings and even a brand-new luxury car. Becky Fatemi once politely declined a limited edition Hermès Birkin bag from a Middle Eastern client. These real estate agents were being wooed by would-be home buyers. But the gifts weren’t the key ingredient to getting a winning bid on a luxury home. Things much less sexy—like having your paperwork in order—are more important. Here are three things high-net-worth individuals can do to get the winning bid on a house they covet.
Be ready to roll
At the premium level of the property market, fat bank accounts aren’t enough; buyers must be able and ready to put their money on the table immediately. “A lot of people talk and they don’t perform,” said Lenz, founder of her eponymous luxury real estate consulting, sales and marketing firm in New York City. Lenz says buyers should “move really quickly” and be ready to close contracts within 24 hours. Doing their due diligence about a property before making an offer would help them be 100% sure about it, which in turn strengthens their bid as well as their position in front of the seller. “It is very easy to make a verbal offer, but you would be more inclined to go to [the person who] has put together a valid case,” said Fatemi, owner and managing director at Rokstone, a real estate firm that specializes in the central London market. Besides liquidity, added Fatemi, buyers need to supply key information right from the get-go, including proof of funds and full contact information for themselves and those who will be representing them during the process, including lawyers and accountants. Lack of contact information could raise a red flag against bidders, said Fatemi.
Show you really want it
Sellers’ agents will often call would-be buyers for face-to-face meetings to gauge their seriousness about an offer. Showing that you’re very interested in a property at these meetings could be decisive in winning a bid. “If you are too calm or too relaxed, you won’t get to the finish line,” said Lenz. “When your eyes are burning [for a property], I can tell you really want it.” Brokers would also search for potential buyers on the web to try to find out more about them and their previous real estate purchases so your history online could help—or hurt—your case. A heartfelt personal letter to the seller explaining why you are interested in their house could also help close a deal, said Fatemi.
Make the seller happy
A contract that fits the sellers’ needs, whether that means they need time to move out after the closing or an all-cash deal, could be crucial. “The highest bidder with the cleanest deal is going to get the house,” said Dora Puig, a prominent sales agent in Miami-Dade County for whom lengthy inspection periods of the property and contracts with too many contingencies can trigger an alarm about the buyer. Lenz, who has sold over $10 billion in properties during her 25-year career in real estate, says that many times older owners would want to transfer ownership of their long-time homes to someone who doesn’t plan to tear the house down—and with it their memories. “Making a seller happy, whatever the wishes may be” could make the difference, added Lenz. She also recommends buyers follow through until all papers are signed because something can go wrong. “Check everything multiple times,” she said. MORE From Mansion Global:
