The vast majority of markets in the United States are currently excellent for sellers and highly competitive for buyers. On top of low housing inventory, high prices are leading buyers into a cutthroat war to get the dream home they’re after. How can you make the right deals for your buyers in a seller’s market?
Know How to Make a Deal Before a House Goes to Market
If you have a client who is looking for a specific type of property in a particular area, you should work your contacts in that locale to see if anyone is looking to sell. In a seller’s market, plenty of homes and condos are sold before the properties ever show up on Zillow. You might be surprised how many people aren’t necessarily looking to sell but will happily close a deal when they find out an interested buyer is ready to close. Making deals before homes hit the market is tricky and relies on good networking, but your buyers will certainly turn into clients for life.
Craft the Best Offer
It isn’t uncommon for homes to enter the market currently and have dozens of offers in the first day or week, depending on the surrounding market. That means that crafting the best offer is more important than crafting any offer. The best offer doesn’t always mean the highest offer, either. Making an all-cash offer, offering an accelerated closing or going in a significant amount over the asking price can all get seller attention and close a deal quickly. Once the home enters the contract stage, you can still complete home inspections and lower down the asking price based on what is found. Negotiation is key to creating an attention-getting offer and negotiating the price back down with enticing benefits for the seller.
Look for Distress
Searching for distressed properties doesn’t sound very positive, but it’s a great way to close deals in a seller’s market. If you find a property that is unfinished, that was foreclosed or that needs major TLC, it takes some skill to present your case to both the seller and the lender. Conventional lending methods often won’t work, but moving money temporarily from a retirement account to make an all-cash offer for the estimated after repair value of the property (contingent on inspections and appraisal) can be a great way to give a fixer-upper a new life without as much competition.
Thrive in a Seller’s Market with Homeland Title & Escrow
Homeland Title & Escrow offers a broad range of title services, including complimentary consultations for first-time homebuyers. To learn more about our services, give us a call at (410) 544-6700.