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