Re-Setting Frustrated Buyer Expectations in a Seller's Market

Real Estate Agent with Keller Williams Platinum Partners

Setting buyer expectations in a seller's market in Kansas City can save you time, money and frustrations!

Seemingly overnight we have transitioned from a buyer's market (more than six months of inventory) to a seller's market (less than 6 months inventory) in Kansas City. Are you seeing the same issues in your neck of the woods? When talking to some other real estate pros from across the US, it seems like the change in market is pretty clear across the board. Naturally there is some lag between when the news passes this info along. So right now, we have real live buyers in the field, still looking to get that deal of a lifetime, and they are coming up on homes that are going under contract in less than a week, multiple offers and oftentimes now going under contract for more than list price. We are hearing that many buyers are getting very frustrated, and rightfully so - IF they were not given clear expectations up front. If you are not ahead of this shift, and setting your buyer's expectations about the market ahead of time, you could be setting yourself, and your clients! up for frustration and disappointment. After having this topic come up in my last several coaching appointments I thought I would put together this quick tip sheet on how to help set buyer expectations in a seller's market.

So how do you set buyer expectations in a seller's market?

In short, data. You should have the ability to pull up market statistics in your local MLS that can show you average list to sales price ratios over a period of time. In the Heartland MLS that report is called the "Market Conditions Addendum" and does a nice job of compiling the data in a very easy format. Let's be real, all the data in the world doesn't mean diddly if you can't interpret it and relay the info to your buyers in a way that they will understand. Contact me to go over different strategies to communicate what is going on in your market.

So what if your buyers still think that they can go out and steal a property?

So if you have tried to set your buyers expectations by showing them the data that shows them that we are in a seller's market here in Kansas City or wherever you are, then sometimes losing out on a property is the only remedy. We are the agent of our client. We can provide advice and consult to the best of our knowledge, if your client still wants to lob in an offer then as a fiduciary you have to do it. Just make sure to let them know that they could be losing out on their perfect home, while someone else comes in on top of this offer and takes it.

Take time to set your buyer's expectations in a shifting market

Ok, great Mat, we hear you, but how can I set my buyer's expectations in this Seller's Market?

Simple. Scripts. List Price to Sales Price The average list price in (____________) is (__________) but the average sales price is (__________). That means that sellers are coming down approximately (__________ dollars). The reason I share this information is that I would prefer to turn you down now, rather than disappoint you later, if you think you could offer $25,000 less than the list price and actually expect to get it. So let me ask you a very direct question. If we found you the perfect home and the seller is only willing to come down about (_________ dollars) how would you feel about that? If you want even more killer tips on taking advantage of this monstrous shift in the market, reach out to me here!

Comments (2)

Catherine Ulrey
Keller Williams Capital City - Salem, OR
Equestrian and Acreage Property Specialist

Consulting with our buyers so that they know what to expect is so important.  Then, there is still the rogue buyer that thinks he knows everything and doesn't listen to us!

Nov 14, 2013 07:44 AM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Setting clients' expectations from the beginning saves you and your clients time and frustrations. Sometimes clients' expectations are as high as the sky and it is up to an agent to bring them back to Earth, carefully and realistically explain the process, condition of the market, educate, outline mutual responsibilities, etc. 

Jan 18, 2018 01:05 AM