Main Line Homes Blog

head_left_image

Focus on the goal

Debbie Reynolds  asked us to contribute winning tactics for a hot market in a blog post. 

So how do you compete and win for your buyers a property in a hot market. There are several tactics to use and if your buyer can be competitive on price you should win, but it is not always about price.

Gather Information

Firstly I will call the listing agent and find out as much as I can about what is important to the seller, dates, timing, etc. I try to build as much rapport as possible with the listing agent as I can especially if it is someone I have not worked with before. I want them to know I am easy to work with, and that we will need to work together somewhat to overcome any obstacles which arise during the process. 

When we list a property for sale, in our listing presentation we explain to our sellers that there are several rounds of negotiations. 

  • Price
  • Home Inspection
  • Appraiser
  • Final Walk through

So when crafting a winning offer in a hot market I ask my buyers to put themselves in the shoes of the seller. What do you think is going to be important to this seller about negotiations. I include whatever I have been able to find out from the listing agent.

Most sellers want to avoid as many rounds of negotiations as possible. Obviously when there are multiple offers you need your offer to stand out as much as possible.

Financial strength

We include a pre qualifiaction ofr a mortgage,but also a buyers financial information form as well to express their strength as buyers.

Strong offer

  • We encourage our buyer to make as strong an offer as they are comfortable with, what price if they are not successful will they be happy making so they have no regrets afterward.
  • Inspections, even a homeowner who maintains his home is always worried about being nickled and dimed on inspections, especially from a multiple offer situation as buyers often try to claw back some of what they have paid over the asking price. So, maybe including  that buyers will absorb the first $5000 of any issues arising in a home inspection might alleviate some of that concern and reassure the seller they will not get nickled and dimed on small issues which might arise. Of course some buyers may be willing to waive inspections or take the house "as-is".
  • If using a mortgage and buyer is financially strong enough, we will show our strength and let the seller know if needed buyer will put more money down if the home does not fully appraise. This can be adapted on a sliding scale.
  • If the listing agent has indicated seller have not yet found a home to buy, we might make settlement date a sliding issue to allow the seller to find a home within set parameters.

The goal

The point is to never lose sight of the goal for your client. If they want the house what are they willing to do to make sure their offer is accepted. If they want to include a letter to the sellers, fine, not that I think this holds much water as issues might arise from it that put the seller off. For example we received recently three offers on a listing, two included letters, one mentioned their dog, the sellers were not dog people and the thought of a dog tearing up their hardwood floors they had lovingly installed did not appeal. In the end putting aside the letters we focused on the offers solely.

The goal is to reach settlement and for the buyer to move in to their new home.

In Tredyffrin Easttown we have multiple offers on most properties at the moment. Knowing what works to win those offers and adapting our offers to be successful helps our clients achieve their goals. Whether our clients are buyers or sellers we know the tactics to use in negotiations to help them win. Contact us today, Nick@VandekarTeam.com or call office 610-225-7400, call or text cell 610-203-4543 and put our experience and skill to use for you.

If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you,  contact us or connect

  Twitter link  Linked in linkl our blog RSS feed of MainLineHomes Blog

Feel free to subscribe to our blog to stay up to date with our latest posts and information on the Tredyffrin Easttown and Main Line Real Estate Market. 

 

Comment balloon 22 commentsNick Vandekar, 610-203-4543 • April 10 2017 01:29PM

Comments

YOu did a good job....nice topic that Debbie suggested too!

Posted by Kristin Johnston - REALTOR®, Giving Back With Each Home Sold! (RE/MAX Realty Center ) about 2 years ago

Real estate is all about negotiations and if you know the "why's" then the job is easier.

Posted by Gwen Fowler-CRS- 864-638-3599 SC Mountains & Lakes--, Gwen Fowler Real Estate, Inc. (Gwen Fowler Real Estate, Inc) about 2 years ago

Kristin Johnston - REALTOR® I agree this is a great topic we can all learn from each other.

Gwen Fowler-CRS- 864-638-3599 SC Mountains & Lakes-- totally agree, the more information you can gather the better.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) about 2 years ago

Nick and Trudy,

Well said and I enjoyed reading your thought process.  Being logical and organized does give you the edge.  A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) about 2 years ago

Good morning Nick & Trudy. This is so well done and it does really depend on focus.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) about 2 years ago

Hi  Nick & Trudy, you have put a lot of thought into your process and I am sure your clients love the "winning" attitude that their agents display. Well done!

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) about 2 years ago

This is excellent advice to share with prospective home buyers.

Posted by Roy Kelley (Realty Group Referrals) about 2 years ago

Good entry into Debbie Reynolds contest. The more information you can get from the seller's agent...the better for the buyer.

"What do you think is going to be important to this seller about negotiations. I include whatever I have been able to find out from the listing agent."

Posted by Margaret Rome, Baltimore Maryland, Sell Your Home With Margaret Rome ( HomeRome Realty 410-530-2400) about 2 years ago

That is an interesting point about the dog letter. I can see why a seller might think that. Thank you for participating.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

Nick & Trudy, I called a listing agent to "have that discusion".  The property is listed $5,000 above any comps to suppor the list price.  The listing agent said to me ... the seller wants $10,000 more.  In my market that is common. The LA kept telling me he and the seller know it will appraise. Really.  I had intel the LA did not know. 

So I asked if the seller was willing to sell for the appraised value.  I submitted the offer with an addendum that states that.  Now we wait and see if the seller will put their own money where their mouth is.  

All markets are different. We need to get as much information as we can to best represent our clients.  Nice post. 

Posted by Kathleen Daniels, San Jose Homes for Sale-Probate & Trust Specialist (KD Realty - 408.972.1822) about 2 years ago

Nick & Trudy Vandekar  Very interesting strategies here ,,  I always say the appraisal clause is only ones man opinion  after all value is based on what a person is willing to pay

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) about 2 years ago

Ron and Alexandra Seigel thank you, there is amethod to my madness.

Sheila Anderson all you can do is prepare, make your best offer and keep your fingers crossed, and be nice to the listing agent.

Sheri Sperry - MCNE® this business takes building relationships, other agents need to know you are professional and you will also work to keep the deal moving forward when in your clients best interest.

Roy Kelley thank you, we try.

Margaret Rome, Baltimore Maryland if you find it out, then ignore it, it only makes the seller think what else is this buyer going to do.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) about 2 years ago

Debbie Reynolds those love letters can backfire, you have to be careful. I show them to my sellers, then say, let's lay those aside till we look at the fundamentals of each offer. Often the letters become irrelevant.

Kathleen Daniels this is one of my big concerns, you can win any multiple offer with a big number, but will it appraise. As a seller you also have to consider this.

Hannah Williams true if the buyer has plenty of cash, however, if funds are tight, that appraisal can derail the deal. We recently had a physician loan in an offer, there was little or no money down at all, if the appraisal was bad then you had a big issue.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) about 2 years ago

Nick and Trudy

A goal without focus is only a hope.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 2 years ago

Lou Ludwig thanks for stopping by and that is very true, can also be a dream.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) about 2 years ago

Nick and Trudy, I came over from Debbie's re-blog. You did a great job on this post. All the details matter and I like that you point out buyer letters can sometimes hurt and not help. I've experienced that as well.

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group Brokered By eXp Realty) about 2 years ago

Amanda S. Davidson thanks for the comments, it was funny in this instance because the wife intially loved the letter, then they mentioned their dog and they both looked at each other and mentioned the floors.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) about 2 years ago

Well, you validated what I do exactly , but now I need to write a different post . Glad we have agents like you out in the industry!

Posted by Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D, & Host of Postcards From Success Podcast (Big Block Realty 858.232.8722) about 2 years ago

Nick & Trudy Vandekar - Your sound advice will be greatly appreciated by consumers. You have a talent for educating the public; you're trustworthy and credible!

Posted by Patricia Feager, MBA, CRS, GRI,MRP, Selling Homes Changing Lives (DFW FINE PROPERTIES) about 2 years ago

Thomas J. Nelson, Realtor, CRS Sorry, but I think it is good if we have to think harder and as you say validation of what we are doing as being along the right lines.

Patricia Feager I view you as my own personal cheerleading team. Thank you, you are very kind.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) about 2 years ago

Your suggestion on absorbing a certain amount of the inspection items to assure the seller the buyer won't nickle and dime them during the inspection period is an excellent suggestion.  I've never thought of that.  Great way to keep the inspection contingency while still giving assurances to the seller - some multiple offers end up with buyers waiving the inspection which is something I do not recommend to my buyers, so I like your suggestion better. -Kasey

Posted by Kasey & John Boles, Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties (Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com) about 2 years ago

Kasey & John Boles Our old agreement used to have two post inspection remedies and one was the buyer would accept a certain level of cost. That was removed but it is a good policy to use.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) about 2 years ago

This blog does not allow anonymous comments