In order to prepare buyers for a competitive real estate market, I stress a proactive approach to the search which assures them that we will find a property, even if it takes several rejected offers and requires a flexible approach to our search parameters.
The most important activities in a successful real estate property search include:
1.Clients should prepare a thoughtful list of priorities for their new hometo discuss in detail with their agent. In that discussion, the agent can advise about price ranges for the combination of “wants” and get the buyers to a list of “needs.” This is time well spent prior to looking at properties.
2.Have clients do their homeworkby driving through neighborhoods and researching schools so they can narrow their search to a handful of good locations. No matter what the market conditions, location trumps any other criteria for buying a home. In a low inventory market, several locations should be considered. If the search is too narrow, the buyers will get frustrated at the lack of choices and may even become discouraged about buying a home.
3.Assemble a team of expertsincluding a god mortgage broker, inspector, insurance agent and title company. Then, your team can assist you and your client in a smooth transaction. An excellent mortgage broker, with a track record of success, can pre-approve the buyer so they are prepared to make an offer on a home. If a buyer needs a loan to buy a home and they don’t obtain a pre-approval, then they are not ready to buy.
4.Encourage clients to make offers on homes that meet most of their priorities… even if it is not the “perfect” house.Buyers will soon find that there is no perfect house and no two are alike. If a buyer finds a home and makes an offer that was not chosen because of a multiple offer stampede, reassure them there is always another home that will soon come on the market that will meet their needs.
5.Prepare a strong offer after studying the closed sales and taking marketing current market condition in consideration.A listing is considered and invitation to bid. In some markets, this requires coming over the asking price; in others, slightly under. Buyers need to realize that a well priced home often sells above the asking price.
6.Aclean initial offer is vital to securing a contract.Preparing a Sale & Purchase Contract correctly with all required disclosures and addendum's is crucial to getting a deal accepted. Agents need to take the time to make a clean offer and a clean offer means that the contract itself is prepared correctly by the agent. I often see missing or incomplete addendum's and disclosures, miscalculations and incomplete contracts. A smart listing agent knows that if a buyers rep brings him a sloppy or incomplete offer, they will most likely have a rough escrow period. A clean offer includes: as few contingencies as possible, a quick close (30 days or less), loan pre-approval, proof of funds for either a down payment or cash sale, and an “as is” addendum to assure the seller that the buyer is fully prepared to purchase the home in its present condition. If a report later reveals a significant issue with the property, the buyer can negotiate a credit or simply cancel the transaction.
7.Lastly, help prepare a strong cover letter from the buyers themselves, highlighting the reasons that they love the property.The letter will often convince the sellers that the offer is sincere and their beloved home will be passed on to owners who will love it as much as they have. The Top Agent should pull together the offer and the supporting documentation with their own cover letter, stressing their years in the business and closing success rate and an accepted offer will soon be the result.
I’d love to hear from you. What other techniques have you used successfully in multiple offer situations?
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"I never got to thank you for all your help in purchasing... It is a beautiful home and with some TLC, it will be even more beautiful.
I have to add how invaluable David (Colson) has been throughout the process and continues to add his assistance. After ending my relationship with 2 other agents prior to hiring David, I hit pay dirt with him. You are very fortunate to have him working with you. I will strongly recommend any of my friends and family to utilize David (Colson) if they are interested in buying a home in the area.
Thanks again for all your assistance.