In a seller's market, buyers are at a disadvantage. In this “hot market” sellers will most often be looking at multiple competing offers and will typically pick the surest, most attractive submission so it’s even more important that they have a skilled agent, like you, in their corner!
Here are a couple of tips to ensure your buyer clients beat out the competition:
Get Pre-Approved or Provide Proof of Funds (POF)
With multiple offers on the table, the seller is more likely to accept an offer from a buyer that has been pre-approved or can provide proof of available funds.
In the past, a pre-qualification letter would suffice, but these days a pre-qual is no guarantee of getting an offer accepted. The first step to guarantee your buyer will be able to compete in the market is to make sure they have a pre-approval letter on hand. This will give sellers the confidence that the buyer can obtain the appropriate financing.
If paying cash, proof of funds is a reasonable alternative to a borrower’s pre-approval. Proof of funds (POF) is documentation that shows how much money the purchaser has available (does not include non-liquid assets, such as life insurance, mutual funds, stocks/bonds and possessions). In most cases, a certified financial statement from your financial institution will suffice for POF.
Move Fast
In today's fast-paced housing market, homes are selling quickly and agents need to be ready to tour homes immediately. This is not the time to let your clients haggle over minor repairs or request pre-inspection; many buyers are making offers without even setting foot in the house.
For buyers trying to get into a home, it's more important than ever to work with an experienced agent who can help them move quickly and get the best deal possible.
Be Aggressive
When shopping for a home, it's important for buyers to remember that the asking price is not always the ceiling. In many markets, the asking price is actually the floor, and sellers are often looking to negotiate between multiple offers.
Cash offers (without contingencies) are usually the most attractive to sellers, so if you're able to make such an offer, it may provide a significant advantage. Even if not paying cash, it’s best to recommend your clients put forth their “highest and best” offers in a hot market.
Of course, every situation is different, so this is where a real estate agent’s expertise is invaluable.
Round Up
When making an offer on a home, it is important to stand out from the other potential buyers. One way to do this is to round up the offer price.
For example, if a home is listed at $299,000, try offering $300,000 instead. This small increase can make an offer seem more appealing to the seller, as it shows willingness to pay a bit more for the property. In a competitive market, every little bit can help, so don’t be afraid to round up the offer price when making the initial offer.
Work With The Best Real Estate Agents
To be the best agent, you need to surround yourself with a team of experienced real estate agents. At RE/MAX Bayshore, our team of agents is the best in town and they are ready to help you get the best results for your clients.
Contact us today to learn more about how you can grow higher, faster.
Tags:
Buying
July 21, 2022