Bye Bye, Buyer's Market: Tips for Working with Clients Who Can't Land a Home
By Zoe Eisenberg
It's official: the buyer's market is behind us. With the market improving, the real estate industry is abuzz with positive news every day. While increasing prices and multiple offers may be a dream for a seller, it may be a nightmare for a buyer.
"The latest Homes.com Local Market Index continues to show encouraging trends, with pricing gains month over month and year over year," says Brock MacLean, executive vice president of Homes.com.
"Adding to this momentum, the ‘Homes.com Rebound Report’ reveals how the housing recovery process is unfolding across the country, measuring how far each market has recovered from its peak to its greatest drop in index value,” adds MacLean. “The latest Rebound Report indicates 14 of the top 100 markets have fully recovered from the 2007 Great Recession, up from nine as reported in the previous months report."
More and more hopeful homeowners are entering the fold, but with markets across the country showing scant listing supplies, and investors purchasing multiple properties at once, it's becoming increasingly difficult for buyers to beat out competition and successfully land a home. Many homes are receiving multiple offers, and the once forgotten bidding wars are becoming a commonality again.
These struggling buyers aren't what you'd expect: those with a shaky credit history or a former foreclosure. Most of these buyers are well qualified, and yet still searching for a home for months, and possibly even years.
A recent Century 21 survey found that 33 percent of buyers currently searching for a home have been on the hunt for more than a year.
According to the survey, 33 percent of those searching for a home have been hunting for over a year, and 67 percent have been searching for up to a year. Of those looking, 42 percent have made an offer in the past six months, while only 11 percent have had their offers accepted.
If you have clients who are struggling to close on a deal, here are a few tips to both encourage them, and ensure their success:
Get Them in a Decision-Making Mindset
Workman suggests the following dialogue: "If we go out and look at homes on Saturday and you find one you like, are you ready to start making offers?"
If the answer is no, don't take them to see the homes. This will force them to be serious before they begin looking, will improve their chances of actually landing a home, and won't waste anyone's time.
Don't Bother Low-Balling
Can They Go Cash?
Can They Offer above the Asking Price?
Remove All Doubt from the Seller
“Many offers often contain gray areas or unanswered questions about the purchaser’s ability to obtain financing, or their ability to close in a timely manner,” continues Finn.
Represent Them Well
Have your buyer write a love letter to the seller about why they can see themselves in this home. Include a photo of the buyer's family.