NAVIGATING A SELLER’S MARKET
SCOTTSDALE, Ariz. – Agents are looking for creative ways to get their clients offers noticed in today’s extreme sellers market. With the number of homes for sale at historically low rates, the competition for bidding wars and adding escalation clauses are becoming more common. This leaves agents and clients alike wondering how their offer will stand out.
“Say, ‘Seller, we’ll give you $100,000 over [asking] price, and we’ll give it to you in cash,” said My Home Group Agent, Javier Vidana to CNN Business’ Anna Bahney. “Say those words and you got the house,” he stated sarcastically.
However, there’s some truth to Vidana’s point. Buyers who are already buying at the top-of-the-market are expected to go to great lengths and submit considerably more to try to entice the seller to choose their offer. Buyers looking for their dream homes must be flexible and ready to jump right into the thick of competition to try to ensure their offer is the one accepted ~ and that’s just the beginning.
“They need to know this is what they are competing against,” Vadana explained. “If homeownership is one side of the cliff, it has become more perilous and difficult to make it to the other side.”
Whether a buyer writes a heartfelt letter, waives an inspection or offers well above asking price, all agents are feeling the pressure to execute deals as quickly as possible for their clients, while still getting them the best contract possible. However, the MHG Broker Department has a few tips for agents who are navigating these tricky waters.
“Most sellers are pretty smart and although most want maximum dollar, all of them want maximum peace of mind as it pertains to selling as well as moving,” said MHG Managing Broker, Todd J Smith. “As such, a savvy buyer should consider making their offer super clear and concise verses crazy. It makes most sellers nervous to waive the appraisal contingency and/or the inspection period completely, so the buyer should consider modifying the appraisal contingency to List Price versus Purchase Price (if they are offering more than the asking price). They should consider shortening the inspection period versus waiving it and/or shrinking the BINSR process to accept or reject verses accepting the premises As Is (No Repairs). And most of all, they should offer the Seller their ideal closing date and moving date, even if the latter involves some post possession.”
In today’s market, it’s important to work with an experienced agent who can navigate these deals with professionalism, knowledge and proper execution who have their brokerage’s support. If you are looking to buy or sell a home, reach out to one of our experienced agents today.