How to Coach a Buyer in a Sellers Market 

 March 23, 2022

By  Dennis Jones

Seller's markets are great when you represent the seller.
But seller's markets are downright brutal when you represent the buyer.

... Generally, when inventory drops below a 3-month supply, it's considered a seller's market and sellers will be less willing to negotiate.

...... When inventory drops below a 2-month supply, many sellers will not want to negotiate and will expect the contract terms to be in their favor.

......... When inventory drops below a 1-month supply, get ready for an out-of-control frenzy where new listings will often receive multiple offers the first day on the market and many offers will be ABOVE the asking price.

R.A.R.E Agents adapt to these situations and adopt specific strategies to increase their buyer's chances of buying a home in competitive seller's markets.

Sellers markets are not business as usual.

They are highly competitive and require aggressive strategies.

Here are three tips to prepare your buyer for success:

1) Encourage your buyer to be ready to make a decision. There's no time to "sleep on it". Other buyers may have looked at the home before you and are ready to write an offer. Your buyer needs to be quick and decisive.This is not the time to lowball the seller.

2) Submit your best offer first. Review the recent sales along with the currently available homes on the market and counsel your buyers about making a strong, aggressive offer. That might mean over asking price. It might also mean including an escalation clause.The best offer is not always the highest price. Ask the seller's agent if there is a preferred time the seller would like to close.

3) Eliminate all contingencies except those that are absolutely necessary (like final loan approval). Shorten the normal inspection time to a minimal number of days and suggest that your buyer be willing to take care of minor repairs themselves.

In a seller's market, you will often be in competition with other buyers who are interested in the same home your buyers are interested in. You must write an offer that the seller will prefer over all other offers they receive.

Low inventory conditions are an opportunity for you to demonstrate your value by identifying homes your buyers cannot find on their own.

Leverage your network of local agents to have the first opportunity to show their new or "coming soon" listings.

Dennis Jones

Dennis is a 23-year veteran of the real estate business. His industry experience includes over 5,500 residential real estate transactions exceeding $1 Billion in contract value. He founded RARE Agents to help agents of all experience levels raise the bar of excellence through his mentoring and coaching programs.
Email: Dennis@RareAgents.com.

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