The inventory of homes for sale, especially entry-level homes, has been lean in many areas of the country. When several home buyers are interested in the same property, the competition can create bidding wars. This drives up the price of a home, and if a buyer isn’t careful, he or she could also find themselves waiving important contingencies.
Your Exclusive Buyer Agent (EBA) can help you make a compelling offer that doesn’t break the bank, while ensuring that your best interests are protected! Strategies may vary by EBA and local market, but here are 3 tips for example!
Base your offer on material facts and current market data. Your EBA will make smart price comparisons based on recent home sales in the area. Your EBA can help you identify the cost per square-foot on similar homes, which shows if a home price is much higher than it should be.
Home condition, the age of the home, and the quality of home construction and materials can all affect the price you offer. Your EBA is a negotiation expert who will present your offer in the best possible light, using tact, diplomacy and hard facts to illustrate how the offer was calculated. This helps you get the home at your price, without alienating the seller!
Use psychology. Price psychology, that is! A purchase offer that ends in the number 5 or the number 0 will not grab attention in a multiple-offer situation. Instead, go up by one more number. If you were going to offer $235,000 for a home, consider offering $236,000 instead. If you were about to offer $300,000 on a home, consider making it $301,000. Your EBA will provide guidance to help you!
Be likeable and easy to do business with. It may seem intuitive to nit-pick in order to get the best deal, but this can backfire! Sellers are often emotionally attached to their homes, and they can be stressed by the selling process. An enthusiastic buyer who appears to love the home as much as they do can win over a seller.
Of course, there are home sellers who are driven purely by dollars, and emotional appeals won’t work in all cases. Fortunately, your EBA can obtain insights from the seller’s agent or directly from the home seller to formulate the best approach.
If an emotive touch seems appropriate, a cover letter can be created to accompany your purchase offer. The trick is to share just enough about yourself and your story to strike a chord with the seller, without giving away too much information.