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How do you handle Subject-To-Financing offers?

Did they talk to Mortgage Broker to confirm the Buyer’s Financial Abilities?

No one does this that I am aware of.

There is No Way a Buyer Agent is going to allow you the Listing Agent to talk to their Buyer Mortgage Broker.. Except we do.


The Problem is Most Buyers Agent don't even talk to the Mortgage Broker.

Often Buying Agent Realtors Say ..

Oh I can not ask the buyers how much money they have!



Then I often explain to them; that you are their Agent and that is what your supposed to do is Be Their Agent and DO YOUR JOB!


Critical Skill:  The more sales experience your agent has, the more skills to get you that firm sale.

Taking the Bird-in-the-Bush “subject sale” because of a higher offer price is very, very dangerous.
Here, you are dependent on the Buying Agent’s skills.
Remember that your offer price is not cash but a promise, and if 90% of the listings fail to sell, then your odds are very slim. Strong skills here will protect you from losing $10,000's!


At CoughlinTeam, we protect you from an offer that will never get financing. You see, when we start out, we may have 5 people fighting over your home. If the first offer falls in a week or two because they could not get financing, we are in trouble. You see, in a few weeks, all the other buyers are usually gone, or any that are left will now offer us a lot less money. So, to protect you from a failed “Subject To Financing” removal, we insert a contract term that says:


The seller has a “Sellers Subject” that says “This offer is subject to the Listing Agent Bill Coughlin confirming the buyer’s financial abilities with the buyer’s mortgage broker within 1 business day of this acceptance. The buyer hereby authorizes their mortgage broker to fully communicate about their financial capacity.”


This way, after interviewing their mortgage broker, and if I am concerned that the buyer will not get their financing, then we will immediately collapse the deal and move on to the second offer. Here we only lose 1 business day.


Note: A good friend, a very top realtor tells me that he asks the client what they think their house is worth. Then he says, “Well, let’s give it a try.” Then over the next few months, he does multiple price reductions until it is finally in the correct marketplace.





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