Whether it is KC, Omaha, Sacramento, Orlando….fill in the blank! The tight inventory is discouraging buyers in a big way.
It’s not that buyers aren’t realistic about paying fair value on a property. They just have a bit of heartburn about giving up their first born to be the selected offer!
Not too long ago, buyers had to use speed as their most effective weapon. Hurry to see the home and get your offer in first. No more. Today, you can be the first offer submitted, however, you will have company very quickly. Particularly in homes under 300K, the competition is mighty.
OK, so how do you compete if speed to offer doesn’t really seal the deal any longer? This is the method I use with my buyer clients.
- I provide them with two charts that I whipped up to emphasize this tight market.
By demonstrating the tight inventory and low days on market, I’m not intending to scare them, but simply be crystal clear about home availability when we develop our offer strategy.
2. Step two is to develop a buyer’s offer template that we can use over and over. I say over and over because it is not at all uncommon for buyers to need to repeat the showing/offer process before they get a signed contract.
The ideal offer would be cash, well over list price, waiving appraisal, possibly accepting home in it’s present condition (after inspections), closing in 10 days, etc. That scenario, however, does not even look anything close to what most homebuyers can do.
My approach is to determine and highlight what each individual buyer can bring to the table. This takes into account their comfort level on pricing, timeline and terms. I want each buyer to have a customized plan that highlights the very best offer that we can write. Doing this before hand is time well spent because, once you start touring homes, there isn’t much time to get your offer together plus it helps you stick to the plan when feeling overwhelmed.
Yes, it is competitive out there right now, but homes are being sold every day here in Kansas City. With market knowledge and a preplanned offer strategy customized just for them, buyers can venture out with the confidence that they have a well thought out plan.
As always, we are out here if you need us for anything. Give me a ring with any questions you have.
Note: If you are currently working with a buyer’s agent, this is not intended to be a solicitation for business.
Terry Jackson | Terry@DomicileOne.com | www.DomicileOne.com | 913-488-5623
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