Buying in a highly competitive market. What you need to do to get your offer noticed and accepted

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Buying in a highly competitive market. What you need to do to get your offer noticed and accepted

Sticky
Jun 10, 2018
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The market for real estate buyers in Arizona is very competitive right now. That makes it tougher to get your offer accepted and get the deal going. However, when you work with a seasoned pro as your Real Estate Agent, there are still ways you can get your offer noticed and accepted, all at a good price.

You and your agent need to be prepared:

  1. Have a good mortgage pre-qualification in hand
  2. Understand the motivation(s) of the seller
  3. Put together a good, fair offer

Being 100% Prepared

The key to working your way through a sellers market and into a good deal is being prepared, 100% prepared. That means you must understand the process. The beginning of the process is ensuring that you have been pre-qualified for a loan from a respected, local lender. It’s good to understand the a prequalification from a mortgage lender will probably be taken more seriously then a prequalification from on “online lender”.

The agent who is representing the seller will most likely want to make sure your offer is solid before they even present it to the homeowner. You need that prequalification from a real person that the seller’s agent or can be called directly for information (not some 800 number to a sales rep). We see homes ending up back on the market because of poorly qualified buyers through the wrong kind of lenders. Again, you need a lender the agent can call.

A Good Agent

A good agent will get to the motivation of the seller. This is a top priority for making the right offer, an offer that catches the seller’s attention. A good agent will reach out to the seller’s agent and gather key info:

  1. Are there other offers in place?
  2. Why has the home been on the market this long, for so many days?
  3. Where are the clients going, why are they selling?

It’s a lot like a job interview, with your agent doing the interview. Once you know what the seller wants , your agent can put together the right offer.

The Right Offer

Finally, the time comes to put together the right offer. We recommend putting together a good, clean, fair offer. A fair offer is fair to both parties. You, the buyer, might need to make concessions in this market. Both sides might need to move a little when it comes to items like closing costs, warranties, closing dates, etc. In this market, if you want your offer to get seen, then you need to use the information gathered about the seller in order to make a fair offer that hits on the seller’s “want”.

There are some other considerations to make in this buying scenario:

  1. A personal letter with the offer. This is optional. Today, it can look a little cheesy. It might help, it might not. So, take it or leave it, depending on the situation.
  2. The Escalation Clause. We don’t recommend doing this. An escalation clause basically tells your seller that you’ll beat any offer, thus escalating your offer up to a certain amount. This just puts you in a bad bargaining position. It’s a tool in the toolbox, but only take it out in rare, specific cases. You give up power with these.
  3. Preview houses before you’re ready to buy. It’s a really idea to look through the market before you’re really ready to buy, so that you don’t get trigger happy. You don’t want to end up with the wrong deal. Look around a bit. It’s by looking at a few homes you give yourself the opportunity to “think about” certain items before making the BIG decision.
  4. Your Real Estate Agent has the role of a Fiduciary. Their greatest responsibility is to help you make the best financial decision possible. There needs to be a bond trust and agents really need to listen to what the client wants….it’s our job to get it for you! . It’s also our job to tell our buyers when they’re making a mistake, and to help them walk away from a bad deal. It’s our legal and ethical responsibility to help clients make the best decision for them.

Working for the Client

In this tight market, we want a deal that will work for the client, not for the house. The Southwest Realty Pros Team @ Farnsworth Realty & Management lives by the ethic of “I don’t work for the house, I work to help the client.”

People can get emotional and fall prey to the ‘fear of missing out’ in this market, and they need the right agent to help them and support them through this decision. Success requires having an honest conversation with yourself and your agent. Stop thinking of houses as an investment — it’s where you’re going to live. Don’t buy on perceived value, buy for happiness.

Ready to get out there and find your dream home? Contact our award-winning team today.

If you’ve got 5 minutes, give us a call at (602) 689-1805.

Felecia’s Raving Fans

“Felecia helped us sell our house in Gilbert. She was absolutely wonderful! She was so knowledgeable and professional. We felt very well taken care of and she went above and begin at every step of the way! I would highly recommend her.”

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