In this incredibly competitive market, it’s important to arm your clients with all the information necessary to put together the best offer possible for their dream property.
The buying and selling process can be a mental game, and as an agent, it’s important to help guide your client through the process, educating them on best practices and how to navigate the setbacks and disappointments they might experience.
Here are a few tips for mentally preparing buyers for this multiple-offer rich seller’s market.
1. Educate them
To best compete in today’s market, buyers need to be well-versed in what to expect. Educating your client on the market and the nuances and shifts taking place will ensure they do not feel blindsided if things go differently than what they had expected.
This is where aligning with a seasoned broker with experience makes all the difference. It’s important to make yourself available for any questions and serve as an expert resource to your client.
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2. Craft a strong offer
With the market being as hot as it is, it frequently comes down to a numbers game. More often than not, buyers need to present a few offers before one gets accepted.
Crafting a strong offer when multiples are in play can take many forms. This could include offering a preapproval from a lender if the client is getting a loan, being prepared to go in with as short an escrow and contingency period as possible,
It could also mean preparing a letter to the seller that explains who your clients are, their qualifications and why the property is perfect for them. If they are in a position where they have to go a bit over their comfort level on price, they should make sure to weigh how much the amount will actually be on a monthly basis over the life of the loan.
We always suggest consulting with a financial adviser in addition to a broker when purchasing a home.
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3. Secure the first back-up
If your initial offer isn’t accepted by the seller, try to encourage your client to secure the first back-up offer. Many times, we have seen the first deal fall through for a multitude of reasons, resulting in our clients securing their dream home by being in the first back-up position.
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- How to take advantage of the backup offer on both sides of the transaction
4. Instill trust and patience
One of the most important things to share with buyers is to trust the process. We always believe that things work out the way they are meant to. In retrospect, if clients don’t get the house they initially thought they wanted, something much, much better always comes along.
Patience is key, and working with an agent who is well-experienced and respected can make all the difference when navigating this very competitive market.
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To conclude, preparing buyers for every possible scenario is of the utmost importance in today’s market. From coaching them on how to best present an offer to instilling trust and patience in the process, mentally preparing buyers on what to expect is one of the most important jobs an agent will have throughout their client’s buying and selling journey.
David Parnes is a director at The Agency in Los Angeles. Connect with him on Instagram. James Harris is a director at The Agency in Los Angeles. Connect with him on Instagram.
