In a seller's market, it can be tough to get your buyers offer accepted. Sellers have all the power and they know it. But agents are succeeding in this market and getting their offers accepted and you can too. Hey, it's Andy Mandel with Real Estate Agent Masterclass and in this video we'll teach you five tips that will help get your buyers offer accepted in a seller's market. It doesn't always mean you have to be the highest price by $50,000.
The first tip is to get your clients to be realistic. In a seller's market, they're not going to get the home for a steal and it's important that their expectations are in line with the current reality. It's important to have a consultation with buyers about average sales price to list price, the number of offers properties are receiving, things like that so they understand the market and they can set their expectations. At the end of the day, sometimes buyers have to lose a house or two before they really get it.
The second tip is to know what's important to sellers and their agent and for the buyers to be flexible. Do the sellers need a longer close to find the next place? Do they need a sale lease back? What kind of rent is the seller looking for? Can your buyer provide a month of free rent back to the seller? Is the agent looking for a certain number of days for inspections or loan approval? Calling the agent before sending in the offer is a good way to build rapport and present a clean offer exactly the way the seller and their agent want it up front.
When the agent's reviewing all the offers with the seller, they might be a little more likely to push your offer because they remember your name and you gave them exactly what they were looking for. It was always easier to work with a professional who has shown that they're competent and they can get the deal done. Just sending in the offer through email with no communication is the quickest way to the bottom of an offer file. Consider sending a quick video with your offer, explaining the terms so a listing agent can put a face to a name.
The third tip is to make your strongest offer first. The National Association of Realtors said last month that the average home received four offers and many homes in our area are receiving many more than that if it's move in ready, priced well, or in a desirable neighborhood. A good practice is to come in with your highest and best offer first. The seller's likely not going to give a counter offer to everyone, so try to get your buyer to come to that price than somebody who pays higher than this just deserves the house. If they'd be angry that someone outbid them by a thousand dollars, they should come up to that price. At a minimum consider adding in an escalation clause to the contract that automatically increases the buyer's offer.
The fourth tip is to have your buyers go all the way through underwriting upfront if they're getting a mortgage. If their lender isn't issuing a formal loan approval so that they can write their offer as cash, they're likely going to miss out to a buyer who took that extra step. Many lenders are able to do this upfront and then rush the appraisal so it's done within the inspection period, all within seven to 10 days. The days of 30 day loan approvals are long gone which is good for both buyers and sellers, in my opinion. Obviously, being able to guarantee a certain amount of money above appraised value, if the appraisal misses, or waiving the appraisal contingency completely is going to make your offer really stand out, if your buyers can do that.
I left this for last because, obviously, not everyone's able to do that, but having the conversation upfront with the buyer and their lender about how much cash is available to cover a low appraisal can help you prepare a stronger offer. Fingers crossed that the appraisal comes in at value, but guaranteeing a certain amount over what the property is worth on paper, is huge in this market.
Posted by Andy Mandel
Hopefully these tips will help you get your offers accepted in this crazy market that we're all in. Thanks so much for watching. Please consider liking and subscribing to our channel so you never miss a new video. And we'll see you on the next one.