Even though the market is cooling, low inventory will continue to drive competitive offers. Try these strategies to help them come out on top.
In a shifting real estate market, the guidance and expertise that Inman imparts are never more valuable. Whether at our events, or with our daily news coverage and how-to journalism, we’re here to help you build your business, adopt the right tools — and make money. Join us in person in Las Vegas at Connect, and utilize your Select subscription for all the information you need to make the right decisions. When the waters get choppy, trust Inman to help you navigate.
We just went through the most competitive real estate markets ever. And, while the market is thankfully cooling off in some areas, let’s keep it in perspective – the market is still considered competitive for buyers. Here’s how to get your buyer’s offer accepted.
It goes without saying that you and your clients truly need to work as a team – it’s your responsibility to educate and prepare them, but at the end of the day, they need to be 100 percent on board as well. In this changing market, you need to make sure your buyers are committed to the purchase and not going to be spooked by a slowing market.
Think of the listing agent and the seller’s biggest concern, choosing the right buyer. The right buyer is not just about the “highest” offer, but it’s the best offer, which means a buyer who is a sure thing.
Everyone understands a buyer can get cold feet or buyer’s remorse in a changing market, so demonstrating commitment is paramount. The agent is critical to getting a buyer commitment, so show that you are the type of buyer agent who will see this through.
Start with the basics
- Cash offers: Nothing speaks louder than cash. Currently, more than 25 percent of offers are all cash, which is likely to increase according to a report by the National Association of REALTORS®. The good news is that even if your client can’t afford to make an “all cash” offer, there are many companies that can help bridge the gap to help you make a cash offer (Approved, Homeward, HomeLight, multiple brokerages, etc .)
- Don’t have cash?: Button up the financing. If an all-cash offer doesn’t work for your client, ensure their financing is as close to being completed as possible. Sometimes, finding a senior lender with access to underwriting, who can give your clients as close to a loan commitment as possible, is much better than a simple pre-approval.
- Proactive lender: Also, having your lender proactively call the listing agent to explain the buyers’ strong loan application is a great move used by top agents. Finally, make sure the lender is super-proactive with the listing agent.
- Remove as many contingencies as possible: Have you thought about doing a buyer pre-inspection? Taking the time to do the home inspection before buying the home is a great way to remove that inspection contingency and demonstrate just how much you want the home.
It’s even better than just waiving the inspection contingency as it shows you did deeper diligence on all of the current and future issues of the house and are satisfied with it. Go above and beyond the normal offers. Here are some more advanced tips that work
Learn, probe and understand what the seller is looking for
Do they need flexibility in moving out? Offer a flexible rent back if you can. Do they not want to move some of their furniture? Offer to take some of it off their hands.
Present your buyer’s offer
Many agents are going the extra mile for their buyers by delivering their offers in the form of a presentation. It makes it look more professional, makes your buyers look serious and is often the edge your buyers need.
In this day and age, when your first meetings are virtual – or just email conversations, you need a way to understand what a seller wants. There are a variety of software tools and applications that provide intelligence on how people are reacting to the information that you send.
For example, HighNote lets you know when someone has opened a presentation and what sections they are looking at. BombBomb alerts you when your video has been opened. Propy sends an email whenever an offer is opened or reviewed. These tools are widely available, and you should use them if you are not already.
The reality is that in today’s market, sellers don’t just want the highest possible price; they want the best offer, which also means the one with the least risk. So to win in today’s market, you need to work with your clients to pull out all of the stops and help them find the right property today and be your customer for life in the future.
Mark Choey is the founder of HighNote Labs and co-founder of Climb Real Estate in San Francisco. Connect with him on Instagram or LinkedIn.