Are your buyers feeling the brunt of the lack of inventory on the housing market?
They finally find a house they like and they are outbid. Or they can’t even get in for a showing before the house is off of the market. It is a tough time to be a buyer and it is understandable that some of them may be feeling a little frustrated and like they’ll never be the ones signing an Agreement of Sale. How do you keep buyers motivated to keep their home search going?
“We are educating our clients that they need to be patient and that it’s common to have five or more offers rejected before finding their home,” said Joshua McKnight, president of the Tri-County Suburban Realtors®. “When clients begin to get frustrated by the process, we like to revisit their motivation for buying a home in the first place. We work with many move-up buyers and one of their biggest motivators is finding more space. If we can help them to understand why they need more space and how it would benefit their family, it helps to keep them motivated and in the market.”
Education is key, Missy Rupp, president of the Allegheny Valley Board of Realtors® agreed.
“Get your buyers prepared mentally, let them know what they are up against. They are aware it is a good market but may not realize what it takes to be competitive.” she said. “Utilize tools we have like the escalation clause, have the buyer put their best foot forward, this is not the time to try to get a bargain. The buyer must be fast getting an offer in to even be considered.”
Preparedness will help the process go as smoothly as possible, said Tim Schrack, president of the Huntingdon County Board of Realtors®.
“I have my buyers totally prepped for buying with pre-approvals, as much cash as they can muster and the knowledge that they may need to drop whatever they are doing and run to look if the right property comes on the market,” said Schrack. “And as one of my agents says, ‘Keep your running shoes on’.”
Sometimes a break from looking – just a few days – may be a good idea for buyers, said Tina Llorente, president of the Realtors® Association of York & Adams Counties.
“It is tough for buyers out there, especially buyers who want to do their due diligence but aren’t able to by including inspections and other contingencies on their offer and getting them rejected time after time. Persistence is the key. Motivation is challenging,” she said. “Sometimes I encourage them to take a mini-pause. Go away for the weekend. Take a few days off from the search. Regroup next week. Stepping away can help them to be more realistic when they come back to the search.”
And whether you have a first-time homebuyer or a ninth-time homebuyer, Greater Lehigh Valley Realtors® President Tim Tepes walks them through the whole homebuying process from the start.
“We go through the Agreement of Sale all over again step-by-step. I also show them a spreadsheet for a sale I did, where I show them the numbers of all the offers that came in. For example, this house sold for $50,000 over asking and buyers paid both sides of transfer tax. I am showing the buyers this before we even start to prepare them.”
“Buyers have to make a decision quickly,” said Tepes. “You are limited in showing time and you are most likely not going to be able to go back for a second showing.”
“It’s a crazy and fun time to be in real estate,” added Tepes.