How to submit an offer when seller already has an accepted offer in NYC

[aslan]

Here is a hypothetical but very well written example offer letter or email that a buyer's agent can submit on a property that already has an accepted offer. Remember that you want to make this offer as compelling and digestible as possible since you're coming from behind and trying to play catch up. It has to be really eye catching for the seller to agree to let you try as well, especially if the first buyer has a substantial head start and is close to signing the contract. See sample below, comments and other ideas welcome!

I am pleased to submit an offer for 111 Fifth Avenue on behalf of my clients Gerry Wiles and Jody Foster, who saw the house yesterday morning with me.

They are offering $2,000,000 with a $1,000,000 down payment (50% down). Their offer is contingent upon financing, and attached is a pre-approval letter from Chase Bank.

If their offer were to be accepted, they would agree to the following additional terms beyond price:

1. Buyers would conduct a home inspection within 3 days of acceptance.
2. Buyers agree to sign the contract of sale within 5 days of receipt - to demonstrate their seriousness and willingness to move quickly.
3. At contract signing, buyers would put down the standard 10% contract deposit to be held in escrow with the sellers’ attorney until closing.

We understand you have an offer already in play, and hope that these terms will strike you as favorable enough to disrupt the current deal in motion. Technically, Gerry's parents will be on the mortgage for the home, but all four buyers’ names will appear on the title: Gerry Willes, Jody Foster, Joseph Willes and Rebecca Willes. Gerry and Jody will be the permanent residents of the home. You are welcome to contact their mortgage broker if you seek additional clarification on this point, his name is Lordy Lord (Cell: 212-222-2222), and I’ve worked with him for almost a decade now with great success.

A little about the buyers:
Gerry Willes has a background in health care administration with a doctorate in psychology. He began his career by providing direct clinical services to children in the foster care system. In 2015, he co-founded “Beauties of Oregon,” a therapeutic residential program for young adults in Portland, Oregon. Beauties of Oregon is a dynamic, transitional living program designed to assist young adults (ages 17 to 28) in their journey to adulthood.

Jody Foster received her BA in Religious Studies from Pomona College and her PhD in Middle Eastern, South Asian, and African Studies from Columbia University in 2012. She currently teaches college-level courses within the CUNY system. Born and raised in Queens, she has lived in Brooklyn for almost a decade. Jody and Gerry are looking forward to growing their family and putting down roots in the local community through home-ownership.

The couple were immediately taken with the style and renovation of the house and would love to make it their home for decades to come. Please let me know if you have any additional questions.

I look forward to hearing from you.

[aslan]

And if you're lucky, you might get a green light from the seller to begin contract review and attorney due diligence. Most likely they will "parallel track" both you and the original buyer. This means that both of you will be racing to finish due diligence, sign the contract and get it counter-signed by the seller first. You'll be lucky to get a response like this from the seller:

Sara, thanks again for your time on the phone today. I was able to get in touch with the mortgage banker as well and he was very helpful with providing some additional background. Some quick follow-ups and confirmations based on our conversation earlier today:

1. The buyers have agreed to increase their down payment to 75% ($1,500,000) to minimize any potential bank appraisal flags
2. We do accept the offer of $2,000,000, however, will not cancel our other ongoing negotiations until we are in a contract with your buyers
3. We will look for your confirmation on timing for a house inspection to be performed, ideally on Tuesday/Wednesday this week, excluding 11-12 pm & 3:30-4:30 pm on Tuesday
4. You can find our attorney's contact information below if you want to fast-track the contract process or run it in parallel.