Today’s hot seller’s market, with its low inventory and rising prices, can make buyers panic and worry endlessly about how they might never close on a home that they love. In this environment, the best way to help your buyer clients is to temper their expectations about price and to prepare ahead of time so that they can be aggressive.
Here are 5 ways to help your buyer clients in a hot market so that they can make successful offers that they’re comfortable with.
1. Even in a hot seller’s market, a savvy buyer and their agent can negotiate for a bargain price.
However, this can backfire in non-financial ways later on. If the price is lowered substantially from the listing price, a seller will probably not agree to further help with needed repairs or problems found in the inspection. As long as you make your buyer aware of the possibility of fewer seller concessions, the deal is less likely to fall through because the seller pulls out or because the parties are unable to agree on other terms.
2. The best offers make the seller’s life easier.
While paying cash or offering a price that’s over asking might attract a seller’s attention, there are other ways to make an offer irresistible to a seller and to show your serious intentions. Scheduling an immediate inspection, offering a lease-back, or offering flexibility in the closing all convey your desire to own that home, and can make your buyer stand out from the pack, even if they do not make the highest offer.
3. Making a “clean” offer is another effective way of creating appeal.
A clean offer, in addition to not having any concessions from the seller, does not depend on the sale of another property, and the financials are relatively simple. One example of a concession that buyers should forgo is personal property. (For this point and the one before it, a great buyer’s agent figures out what the seller wants most of all, whether it’s the closing date they prefer or an agreement to adopt a pet that must be left behind. An easy way to do this is to just reach out to the listing agent to see what their seller wants.)
4. Don’t make the mistake of trying to be everything to your buyer clients.
It’s sometimes tempting to do this with the aim of providing an excelling client experience. However, stick to your area of expertise, and use your industry network to your advantage by recommending the best professionals, such as lawyers, appraisers, engineers, and inspectors. This will actually increase your value in your client’s eyes, and prevent you from making serious missteps or giving misguided advice in an already difficult seller’s market.
5. Help your buyer client be prepared to move quickly in order to close.
In a hot market, moving faster than the competition is essential, and your clients will be unable to do so if they don’t know what to do in advance. You should discuss all of the possibilities with your buyer before they start their search in earnest, so that they are prepared for what prices will be in their desired neighborhoods. Also, be sure to discuss their options if they see a property they like, so that they are fully prepared to make a serious offer that benefits themselves and meets the seller’s needs. The key here is also to keep an open line of communication with your buyer, since a delay of even one or two hours is enough to lose an opportunity.
What are your best strategies for helping your buyer clients negotiate and successfully close on a home?