With historically low housing supply and high buyer demand, it’s a competitive seller’s market, and this mastermind will cover how to negotiate a real estate purchase offer that will get accepted.
When it comes to a real estate purchase offer in this competitive seller’s market, your buyer may not realize that the world is not their oyster. As their real estate agent, it is your duty to help them make a clean, attractive offer. In this Zoom mastermind, I talk about how to ensure your offer will be accepted, despite the market conditions. Spoiler: educating your clients from the get-go is absolutely key.
VIDEO: How to Negotiate a Real Estate Purchase Offer in a Competitive Market
When buyers are confused about their closing costs
This is a common issue. You’re writing an offer and your buyer doesn’t understand all of the closing costs they need to pay. To avoid this confusing situation, you must be preventative. Break down all of the fees and closing costs for your buyers during your buyer consultation. You want to strike up this conversation now instead of when you’re writing an offer.
How to get your real estate purchase offer accepted in times like these
We are in the summer right now, so it is arguably the busiest time of the year, under normal circumstances. In 2020, however, we are also in another situation that has really pent up the buyer demand: coming out of the COVID-19 lockdown. All of this has created the perfect storm for a super competitive seller’s market.
As a result, we have the lowest amount of housing inventory in forty or fifty years. What does this mean for your buyers? They need to look good. There are multiple offers being made, and they are competitive offers. Buyers have never been in a position where they need to look more attractive than they need to today.
What can you do as a real estate agent to ensure that your real estate purchase offer gets accepted for your buyer? Don’t ask your seller for anything. Definitely do not ask your seller to pay for your closing costs! A lot of buyers want to do this, and you need to tell them that it won’t get their offer accepted in today’s market. Flat out, don’t do it.
As I mentioned earlier, you need to bring all of this up in your buyer consultation. This will avoid the pain of trying to teach your buyer this while writing your offer, and it will allow your buyer to walk into the buying process with the right mindset.
The market is hot: I know it, you know it, but the public doesn’t
Most Realtors are no longer surprised by how hot the market is. The demand is high and the supply is low, and we’ve been here a while. We knew all of this was coming, bracing ourselves for a crazy summer made even crazier due to all the pent up demand caused by the COVID-19 lockdown. Despite our knowledge and preparedness as Realtors, the public remains mostly ignorant of the facts.
How do you spread the word? Educate your followers on social media. Keep your SOI in the loop! Quick video updates on the market and infographics with helpful (and easy to understand) statistics will help our cause.
Write a clean real estate purchase offer
To make it as easy as possible to write a clean real estate purchase offer that’s going to get accepted, education is key. Make sure you are educating your buyers upfront during the buyer consultation. Reach out to your SOI database and update them on the current market conditions.
Remind your people that now is a great time to buy, and you’re there to help them craft the perfect, clean offer that will get accepted! This is why they need you! If your client starts off knowing how competitive it’s going to be, and knowing that they shouldn’t ask their seller to pay closing costs, you’ve got a much better chance at success. This is how you get your real estate purchase offer accepted in today’s super competitive seller’s market.