How to Help Buyers Win over Thinventory !
For those of you representing buyers in hot markets where multiple offers are the norm, this post from Sally K. & David L. Hanson might give you some good ideas for your next offer:
In many markets throughout the country, Thinventory reigns...more Buyers than Sellers and the competition for being "the one" chosen as the next lucky owner of a home has
become stiff...calling for creative ways to make the Buyer's stand out and be selected as @Debbie Reynolds @so wisely points out in her contest.
Our market in many areas is also in this condition which has called for pulling out all the creative stops and with both our Buyers and our heads down, devoting our best efforts to finding...and getting the house they wanted...the place they want to call home.
1) It should...go without saying that the pre appro
val letter is necessary....and beyond that....from a recognized and locally respected lender with a great reputation for closing. The bank of the internet or one that is known to be less than reliable can tip the offer in favor of a competing one very easily. Familiar and reliable is priceless in terms of lender reputation. Be sure that the lender is available when your buyer is shopping...that may mean a weekend AND you may wish to get several pre approval letters of differing amounts to suit the price ranges which may be required to be the selected buyer. Explain the now, ever famous, escalation clause you may have to include. We say "anyone can write for the asking price". The Buyer may have to write MORE than asking and strengthen that with larger than normal amount of earnest money to indicate their sincerity. We don't encourage Buyers to include earnest money BUT we do in times of stiff competion, have them write a check and include a copy of the check with their offer to show they are ready to go...and are very very serious Buyers.
2) Prepare the Buyer for this being a Sellers' market...no more "let's make a deal" and artful negotiation involved in writing an offer. For this reason, and because it has been months since we have seen homes sold for the "asking price," we encourage buyers to take a hard look at what they are offering. A
hard look means taking the time to talk with a CPA and see what some examples mean to the Buyer in terms of what their net paycheck can look like when they buy a home that will mean more deductions with more interest and higher property tax. We never ever encourage Buyers to spend more than they are comfortable spending..BUT....we DO urge them to
look realistically at what a higher mortgage payment means to them in terms of their net income. Encourage Buyers to be "good scouts"....be prepared and have this homework done before you shop.
3. As we are sure many agents will mention....the letter written by the Buyer, may be accompanied by a picture...one that all the kids may print their names on and add how they have chosen their bedrooms...can't wait to use the playset in the backyard...etc. Any agent who believes that this is strictly a business transaction...is of course, wrong. Add the emotion from the WHOLE family ....it is everyone's next happily ever after to enjoy. Go a step beyond the printed note from Mom and Dad...make it a family affair...a little piece of your heart....and the emotion of the whole family never hurt.
If you or anyone you know is looking to buy or sell a home in southeastern Wisconsin in the counties of Kenosha, Racine, Milwaukee, Walworth, Waukesha, Ozaukee, Washington and Jefferson...call the Hansons...we are honored to be of service for all things real estate.
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