Let’s face it, its a tough market for buyers. Nearly every listing gets multiple offers, especially in a market like mine - San Diego. Buyers are losing out time and time again to those that are either grossly overpaying, or taking the actions below to secure their dream home. Here are some tips for agents, and buyers, to get that offer accepted.
- Set the Expectations with Buyer
As agents it is our job to prepare and educate the buyers on what to expect. Be careful to not guarantee anything, and certainly be proactive to explain scenarios that will help manage the buyer’s expectations. In a market like this buyers have to be patient, but ready to get very purposeful when the right property comes along. Inform the buyers about being aggressive with terms, what multiple offer situations are like and most of all being ready right when a home hits the market.
- Get Specific and Purposeful
This is for buyers and agents and its so vital to help block out the noise. Get intentional about specific geographical areas, price points and features that are needs vs. wants. This will help narrow the search so energy can be spent on just a few properties, rather than being spread thin and not really getting anything done at all. When a plan is put in place, executing is easier than shooting from the hip.
- Build Rapport with Listing Agent
OK so you have found the property and its time to set up showings. Agents, you have to treat the listing agent like you would like to be treated. Call them to ask a few questions and let them know about your buyers while setting an appointment for the showing. Don’t just read the showings instructions and go. This will help build the relationship of trust between you and the listing agent. After the showing, a simple text with feedback goes a long way. If there’s interest, let the agent know. Keep them updated, they will appreciate it.
- Ask Agent What Seller is Looking For
So your clients what to sit down and make a commitment to the property, thats great and you have established trust with the agent already. Next is a phone call. Let the agent know you are writing and ask what the seller is looking for. Sometimes the listing agent doesn’t even know, so probing questions are important. Ask questions like “What are their expectations on price”, “Do they need to close quickly”, “Would they like a rent back”. These will help you with the offer and also show you are a competent agent that doesn’t only care about the commission.
- Write a Full and Clean Offer
Time to write, you’re crushing it so far! When it comes to the offer its important to make a full, complete and clean offer. Fill in all the appropriate information. A half written offer comes off as elementary and is a bad look to the listing agent. Fill in their information, the financing information, and most of all make sure the contingencies are all correct.
- Attach Purchase Agreement, Cover Letter, Pre-Approval, Proof of Funds
Time to send the offer. Make sure the email to the agent contains a breakdown of the offer and has attached the offer, a cover letter, the pre-approval letter and also a proof of funds - especially if its a high down payment or all cash. What you are doing here is re-enforcing that you're a competent and prepared agent. This goes a long way with multiple offers and will separate you from at least half of the agents that don’t take the time.
- FU with Agent and Have Lender Call Agent
This is key right here! Send the listing agent a text that you have emailed an offer and you want to make sure they received it. Also have the buyer’s lender call the listing agent to go over in detail how qualified the buyers are as well as a third party affirmation about how great of an agent you are. If your lender won’t do this, get a new lender. Ask the agent when you should expect a response and make sure to follow up with them, remember to always be kind and be available!
- Pro Tip: Agents need to go the extra mile, waiting won’t get you anything.
I see this too often, agents in a seller’s market just sitting and waiting and LOSING. Losing out on house after house and losing commission… stop being LAZY! Get on the phones and get your boots on the ground. Remember when I said get purposeful? Well thats especially important here. If your buyers have a specific neighborhood or complex they want to purchase in, instead of waiting and losing, get after it and reach out to homeowners directly. Bring the pre-approval, bring the cover letter and knock on some doors. This kills two birds with one stone because not only will you find a home for your buyers, you're giving yourself the opportunity to find listings too!
Good luck to everyone in this market and don’t be afraid to create opportunities!