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Negotiating In A Sellers Market

by The Schuman Team

Tips For Negotiating In A Seller's Market

In a highly competitive market, buyers must be prepared to negotiate more aggressively than in other markets. The following are a few tips that will help with the process:

1. Write The Offer ASAP - In this market, you need to move with a huge sense of urgency or risk losing the home.

2. Show You Are A Strong Buyer - Large earnest money and a solid pre-approval are extremely helpful.

3.  Be Flexible On Dates - Don't let closing dates keep you from getting the home you love. If you can work within the sellers time frame, do so. This gives the seller one less thing to think about and starts things off on a positive note.

4. Work Quickly - A seller appreciates a buyer who really wants their home. Also, the longer it takes to negotiate, the greater chance of another buyer coming into the picture.

5. Get It Signed! - It is not an agreement until all parties have signed, including any terms that changed during negotiations, so don't delay.

There is certainly a little more to negotiating than this, but these suggestions will put you on the right track.

With limited inventory and rates creeping upwards, competition is heating up for nice homes. A proper approach to negotiating can make all the difference in the world.

 

 

 

Surviving A Seller Market

by The Schuman Team

 

 

 

 

 

 

 

 

While many areas are still a tad slow, there are others that are incredibly active. Some suburbs, and more specifically, certain price points in these suburbs, are so hot they are seeing bidding wars. Both buyers and sellers need to know how to approach a seller's market if they plan to achieve their goals.

WHAT IS A SELLER'S MARKET?

In basic terms, a seller's market means there are more buyer's then available listings. While the number of homes for sale can be easily defined and found on just about any home search site, the amount of buyers in a given price point is a little trickier to figure out.

As agents, we are privy to figures given by our local office. So, I know statistically that the amount of showings on our properties is up 25% from a year ago. Furthermore, I know from the current listings that we have that if I listed a home for between $300,000-$400,000 in certain suburbs, I will likely get 15-20 showings in the first week that it's on the market ( and likely a quick sale ).

So, with our finger on the pulse of the local market, we are aware that some areas are starting to favor the sellers. With that being said, we have put together some helpful hints to surviving a seller's market.

 

FOR BUYERS

1. Get pre-approved up front

2. See homes as soon as they come on the market

3. Make an offer ASAP

4. Make a strong offer ( sometimes over asking price )

5. Work with an agent who knows the local inventory

FOR SELLERS.

1. Prepare and price home to sell quickly

2. Prepare game Plan For Handling Multiple Offers

3. Be Ready To Move Within 30-90 Days

4. Don't Be Afraid To Buy BEFORE You Sell

5. Be Smart - Just because the market has improved doesn't mean you should be cocky and arrogant.

The market has indeed shifted and if you aren't prepared, you could be left out in the cold.

Are We Headed To A Seller's Market?

by The Schuman Team

 

Are The Tides Changing To A Seller's Market?

The local real estate market seems to be picking up. Inventories are low, the weather has been unseasonably warm, and buyers are not just looking, but actually writing offers.  It may be too early to declare a seller's market, but it seems to be at least more balanced.  The busy market is causing buyers and agents alike to start changing the way in which they approach offers. 

SLOW MARKET = NO URGENCY

Over the past few years when things were slower, the buying and selling process often took a long time. Buyers were afraid of overpaying and sellers were unwilling to accept what the market was willing to bear for their home. Basically, there was gridlock and an overall lack of urgency on all parties to get anything done.

Buyers, until recently, had been in control. The general attitude of most was that a seller would be lucky to get an offer from them. Plus, if things didn't work out, they would just buy another home. Their level of commitment was suspect as well with some buyers preferring to just make a verbal offer instead of putting it in writing.

Negotiations also dragged out over days and sometimes even weeks.   Now,  a shift in the market has taken place and those not ready to adapt will end up losing out on the home of their dreams.

TAKE QUICK ACTION OR LOSE OUT

Today's increased activity is causing things to happen at a much faster pace than many are used to, including some agents. Anyone approaching the process in a lackadaisical manner will end up learning the hard way, when the home they want is taken by someone else.

We are not saying that buyers should make hasty decisions. We are simply recommending  that once you know what you want to do, do it quickly. Make an offer, work out the details, and get all parties to sign and date the documents as soon as possibly. This is even more critical if there is heated competition for a particular home.

NO SIGNATURE, NO DEAL

A last bit of advice. Understand that until all required paperwork is signed, dated, and/or initialed by all parties, there is no deal. 

In the end, you need to be prepared for today's changing market and having a great agent by your side will certainly make a difference.  Otherwise, the American dream could turn into a nightmare for you.

 

Displaying blog entries 1-3 of 3

Contact Information

The Schuman Team
HOWARD HANNA REAL ESTATE SERVICES
3550 Lander Road
Pepper Pike OH 44122
Dan: 216-346-3235
Amy: 216-403-9189
Fax: 216-456-2333