7 Steps to Win Against Competing Home Buyers AND 7 Actions a Home Buyer Must Never Do!

7 Steps to Win Against Competing Home Buyers

AND 7 Actions a Home Buyer Must Never Do!

1. You MUST Win the Seller!

So you’ve found your perfect home, you should have your lender in place, and your loan pre-qualified and ready to go. You’re excited, and you can’t wait to close and move in, when “BOOM!” Someone else has fallen in love with “YOUR” dream home! You’re up against competing offers on the same home. What do you do? The trick is to get the seller to choose you over the others. Here are some things you can do:

2. Keep Negotiations Friendly–Smile!

Smile! Especially when the market is competitive it is important to remember that sellers are people and not the enemy. It is easy to get overly competitive and make demands that are trivial. Choose any negotiations wisely. Negotiate only the most important items and let the little things go. Small items of disrepair or deferred maintenance are not extremely important in the big scheme of things. If the seller gets a sense that you are reasonable, trustworthy, and likable, they are more likely to work with you over a buyer who is demanding. How the seller “feels” about you, is often far more important than how much money you are offering.

3. Show Them Your Heart in a Letter.

Many sellers are emotionally attached to their homes. Sometimes the home has been in the family for a long time; or they grew up in it; or it belonged to their grandmother. Still others may have purchased the home themselves and had a personal connection with it from day one. They may have years and years of projects, love, childhood, and family memories in the property. Now they are faced with having to sell. This can be emotional—even traumatic. They really want to sell to someone who will enjoy and cherish the house just like they did. A personal note about you, your family, your motivation for wanting the home, and how much you love the home can go a long way to win the seller’s heart and make the negotiations smooth and cordial.

4. Determine WHY the Seller is Selling

Have your agent find out as much as they can about the motivation of the seller. Why are they selling? Understanding why the sellers have placed their home on the market is another powerful tool a buyer can use in negotiations. Being sensitive and empathetic to the seller’s needs, will go a long way in winning their heart and their mind.

A seller may be selling because they need to be closer to a doctor, family, or friends. Some are looking solely for the highest price. Some are downsizing—some need more room. Some sellers want a quick sale — if so they are not as focused on price. Some need extra time in order to find a replacement property. Be flexible and reasonable to set up a situation that works for both you AND the seller. It can be complicated and emotional, but the more you and your agent know about the seller, the easier it is to draft an offer that will fit the seller’s needs. This gives the seller peace of mind and a feeling that you are the buyer they have been looking for. “It is meant to be.”

5. Know When it is a Buyer’s Market.

During a Seller’s Market, buyers should be aware of a few useful facts. Most buyers wait for summer for good weather and school to be out of session to look, and hopefully, to buy. During spring, fall, and winter, when weather is poor and school is in session, there are fewer buyers–and sellers are more negotiable. When the number of available homes is high, then prices are correspondingly low. When interest rates drop, banks are enticing borrowers.

6. Pick a Professional Agent.

You need a good agent with recent sales! The agent MUST be a knowledgeable well-respected professional with a solid track record–someone who understands the market—someone who will work well with the seller’s agent. Serious buyers agents write professional bullet-proof contracts!
How do you find a pro? Ask trusted friends, neighbors, and other professionals for referrals and interview them carefully. Ask for references and examples of home sales they successfully closed recently. Find an agent with a good relationship with inspectors, escrow officers, title companies, and any other professionals that will be involved in the process.

7. Remove Every Obstacle to Closing on Your Home.

When your agent is writing up your offer, have them ask the seller’s agent what title company and escrow company they prefer to work with. The seller’s agent is more likely to promote an offer that makes them comfortable and their job easier. Read the offer carefully for mistakes. Make as few reasons as possible for the offer to be countered or corrected.

The Seven Things a Home Buyer Should Never Do.

1. Buyers who don’t work to win the seller will not fare well in the housing market.

2. Buyers who are impatient, unbending, and rude under the guise of tough and strong business practices may eventually beat someone in a deal but will encounter countless expensive struggles along the way.

3. Don’t be grumpy. It costs NOTHING to smile or to write a letter concerning your dream home or even showing empathy and understanding—and it will make business and life go better.

4. Don’t forget your homework. Know the market and if you don’t know—what better reason to find an agent or broker who does.

5. Don’t make a sporadic, haphazard, or sloppy offer. Instead, make a reasonable, fair, and well-presented, detailed, and professional offer.

6. Don’t be distracted from the deal. To have your offer “win” over others is a game that takes smarts as well as heart. So play friendly but keep your head in the game to succeed in purchasing the home of your dreams.

7. Finally, don’t use just any agent as your representative. Instead, use a Sage Real Estate Agent. They have the knowledge, wisdom, experience and track record you need to close your deal and open your home. In fact, call us now, 760-765-1776.

Posted in Juli's Blog, Real estate buying.