The pros teach how to navigate difficult deals in a seller’s market.
There are signs the housing market may be beginning to slightly cool as fewer homes are receiving multiple offers, but experts warn you must strengthen your relationships to get your clients difficult bids, while also managing their expectations. It may be the low interest rates driving buyers to grab what they can, but that’s not going to last forever, even if inventory is lower than it was a decade ago, on the heels of the housing market crash.
“As an agent, I always ask sellers what is the most important thing to you in the sale of your home, and what else, and what else? They will usually keep telling you more,” prompts Michelle Humes of eXp Realty. “Not everyone wants a bidding war. Some people don’t want people in their home, walking through it. You learn this by listening more than you talk”.
As an agent, you must be a problem solver, and do not expect to do things the traditional way. Clients are looking for agents who can be resourceful in this low inventory housing market.
Market Update
“The market is changing. There are fewer multiple offers. Set expectations with your clients, but don’t give sellers a list of things you want them to update or change, because in this seller’s market, you will lose the listing,” coaches Willie Miranda, agent.
Many buyers are throwing their hands in the air and choosing to sit this market out by renting. Some sellers are listing, and then choosing to rent over selling high only to buy high.
“Start setting the expectation with you buyers now that this little bubble we are in is not going to last forever,” warns Miranda.
What clients want to hear, “as an agent, it’s my job to get you top dollar with the least amount of hassles”.
Manage Expectations
“If someone comes to me with a $350,000 budget, we only show them $300,000 houses, because that’s what they are going to get in this market. We have to manage their expectation,” said Humes.
“The agent getting their clients the bids are the agents getting on the phone with the listing agent to understand what the seller really wants. Do they want a rent-back option? The agents who are doing this are in constant communication, and they are winning the homes for their clients. Also, you should have the listing agent explain to the seller who the buyer is, and how they qualify to buy the home. Never forget this is an emotional sell for the seller.”
Take-Aways
Agents, do not be sloppy with your offers! Make sure you send one email with all the proper paperwork attached.
“We had an agent come into our office and ask the listing agent what they could have done better to win the bid. They asked to be walked through how they could have won the bid. That’s the type of agent I want to work with. That’s the kind of agent who is learning based, who is problem solving based. I was very impressed with them,” said Humes.
Remember this is a marathon not a sprint. Long term relationships in the business are vital. The buyer’s agent the listing agent wants to work with, has a greater chance of winning the bid.
