Last month I reported that we are seeing the signs of an unbalanced real estate market where the upper hand has shifted to one side of the bargaining table, the seller’s.
Buyers need to be prepared for sellers to take the upper hand during negotiations because of real or perceived advantages.
As a real-life example, one of my buyer’s recently offered a seller full price for his home and after inspection asked for him to complete a few minor repairs. It was a reasonable request. The seller flatly refused and became belligerent with each attempt at reaching a compromise. Reason? He had a higher backup offer and was trying to get my buyer to back out of his contract. All ended well for my buyer but it was not a pleasant transaction.
What can Buyers do to Succeed in a Seller’s market?
Few Contingencies: Write an offer with as few contingencies as possible.
Backup Offer: Don’t hesitate to put in a backup offer on a home that has just gone under contract. I can’t tell you how many of my buyers have gotten the home of their dreams when it looked like they didn’t stand a chance.
Know Seller’s Goals: I always make the effort to speak to the Seller’s agent to learn what I can about the Seller’s needs. Are they getting transferred and need to leave quickly? Are they still looking for a home to move to? There is so much that can be learned that would affect how we write our offer.
Stay For No Cost: Make the offer for seller to stay at no cost in his home for a few days after closing to give the seller some breathing room. I have seen this strategy work!
Act Quickly: If my buyers find a house they really like, I encourage them to act quickly. All too often during this market buyers lose out if they decide to sleep on it.
Posted on 05/24/2014 at 11:30 AM
