The last thing a home buyer wants is to be caught off guard in a hot sellers’ market. Since inventory is low and competition is high, it’s important to determine what your buyer wants in a home, move quickly and get your offer accepted ahead of any competitors. There’s no way to guarantee success in a hot sellers’ market, but these three tips for working with buyer clients should help you get ahead of the game.
Determine Whether or Not Your Buyer is Motivated
Buyers may not really be buyers if they’re merely taking a peek at “what’s out there”. If your client is simply browsing the market, it’s likely that you’re wasting your time and theirs by showing homes that won’t be there when they truly are ready to buy, if ever. Motivated buyers will often exhibit a sense of urgency and will want to act quickly when a prospective home is available. In this fast-paced market, your time may be better spent on truly motivated and ready buyers.
Set Proper Expectations
Before scheduling appointments or conducting showings, it’s imperative that you have a frank and honest discussion with your buyer about what to expect from a hot sellers’ market. Buyers who don’t keep up with the real estate market may not realize the drama and fast paced environment that accompanies these hot zones. It’s your responsibility to guide them through this fluid market without losing sight of their goals and without them becoming unduly discouraged with the market and with their agent or broker. Balancing expectations and reality can be a hard tight rope to walk, but you must become adept at deflecting negative feelings that are bound to come up as reality sets in for the buyer.
Use Your Time Wisely
Timing is critical in a hot sellers’ market. You should be willing to preview listings for buyers who cannot get off work or otherwise are unavailable, but are interested in a particular property. There are situations where “sight unseen” contracts may be the only way to compete when the seller has set up a rigid deadline and your buyer is unavailable. Learn to direct your focus and not waste time once it has been determined that the property you’re showing is not what your client is looking for. Consider approaching owners of homes your buyer has identified as a style, area, school district, etc. that is very desirable to them and who don’t have their homes listed.
For more information on the fast-paced, complex environment of a hot seller’s market, check out our course Navigating a Hot Sellers’ Market.