Right now, experts claim that we are living in a seller’s market. That may be good news for some, but what about those looking to buy homes? While sellers may have the upper hand, real estate agents still need to look out for their buyers. The biggest challenge may be figuring out exactly how to do this.
What Is a Seller’s Market?
As part of your real estate continuing education, you have likely heard the phrases ‘seller’s market’ and ‘buyer’s market.’ In a seller’s market, the demand for houses exceeds their supply. With so many buyers interested in one house, you may not always have the opportunity to get buyers the low prices they would have received in days past.
While it may be a seller’s market, buyers are still relying on you. You can help your buyers navigate this market with a few helpful tips.
Know Your Buyers
First, you need to understand your buyers. More than one-third tend to be first-time buyers, which means they may need extra attention. The median age of first-time buyers is 32-years-old. Additionally, you should note that most real estate agents appealing to buyers use social media as a way to reach out to them.
You also need to know that in a seller’s market, many buyers may begin to think that renting a home may be a better deal. Appealing to buyer’s needs and desires may be the key to landing a sale. Spend time getting to know your clients so you can speak to their desires.
Encourage Flexibility and Readiness
When you are dealing with a seller’s market, your buyers need to be ready to make an offer at any given time. Flexibility is a crucial characteristic to have in the homebuying process, and the need to place an offer may occur at any time. Buyers also need to know that they are up against a sea of other buyers vying for the same property.
Stick to the Budget
Buyers are often on a strict budget, having already determined how much they are willing to spend. You may be tempted to encourage buyers to step outside their budget in a seller’s market, especially as the bids start pouring in. Contrary to what you may feel your real estate continuing education has taught you, the key is to allow the buyer to stay within their budget.
You can help your clients by pushing them to receive pre-approval for a home loan. Pre-approval will give buyers a specific budget and prepares them to walk away from homes that simply are not within their means.
The more you can speed up the buying process, the better your chances are of landing the perfect home for your client. A pre-inspection prevents the need for further negotiation regarding the price of the home, and the process is advantageous for the seller as well.
Real estate agents need to keep up with current trends and regulations. You can best help your buyers by staying in the know. Real estate continuing education is one way to do exactly that. Start your training today to see how you can prepare your buyers.