In this market, you may be like me, with several buyers, but all who want to take their time, or wait til prices drop or put in the low ball offers on the nicest homes in the neighborhood...? Right?
How do you get them off their fanny and buy?
One buyer I have has said "I've been renting for 10 years and I'm just waiting for the right time." Plus of course, he has calculated that "the prices will bottom out next year at up to 15% lower than where they are now."
Ok, so he may be right, but he may be wrong, but in the meantime, he is still:
1. Paying his landlords mortgage
2. Not building equity
3. Not taking advantage of any tax benefits of home ownership (in fact, his rent is just slightly, yes SLIGHTLY, less than what the mortgage would be on a home in the price range he's looking in).
4. Not living in a home he can upgrade, change or call his own
5. Not capitalizing on the longer term investment possibilities of real estate in the San Francisco Bay Area.
Maybe you, like I, feel the real estate market is like a river, ever flowing, always moving, always a good time to jump in.. yes you might jump in right before some white water, but the calm after that is what makes it all worth it. Look at history... we continue to have these cycles, and always will. Will a buyer like this just wait forever? Or can he look at the long term gain he would've had if he'd bought years ago, or project out (even with a modest gain) what he could gain in a few years. Admittedly, if this was a short term thing, if he was expecting to move within a couple years, sure, wait. But he's a partner in his firm, has fantastic earnings, and is even buying beneath his means. He's smart.. but has he calculated out his tax savings?
I loved Wendy Cutrufelli's post recently http://activerain.com/blogsview/155979/A-SELLER-CREDIT-IS and have started to use this as a tool with buyers. If they're waiting for a price drop before they buy, show them that with a seller credit they can capitalize on that (supposed, projected, expected) price drop now by getting into a lower payment. Sellers want to sell, buyers want to feel they bought at the right time , so isn't a solution like this a win-win? (by the way, I also have this as a spreadsheet on my laptop and have it at all my open houses, at the ready should someone start talking about lowballing a seller).
When I have a buyer who wants to low ball a seller, I evaluate the comps with them, evaluate the trends in the area, the trends of that particular house i.e. where they started, where they are now, and are they in line with comparable properties, etc. I then show them that by asking a seller for a credit, vs. low balling them into insult, we may get everyone exactly what they want. Isn't that what we're in the business for? Putting deals together?
What are your tools of the trade to get the buyers off the fence?
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