Buyers are in a very difficult negotiation environment today as with nearly every offer they write they will be competing with multiple offers.
Recently one of my own agents used a unique strategy to help her clients win in a multiple offer situation. In this case they knew this particular house was probably going to appraise at a certain value but because of competing offers it might go higher than that.
Their unique strategy was to go a little bit above list price in their offer (about the level they thought the house could reasonably appraise). But then they decided to do something else. They wrote in the offer that they would give the seller a closing cost credit.
Yes, they agreed to pay $5,000 of the seller's closing costs. By doing this, the seller would net more dollars, which is no different than if somebody had bid up the price, but now they eliminated the appraisal danger.
The strategy worked! Her clients won the bid because of this unique negotiation tactic!
So you wrote an offer and it failed, now what?
For most agents this is the end of the line but for savvy agents this is an opportunity to be placed into a back up position.
While we all prefer to be in 'First Position' in a hyper competitive market agreeing to be 2nd position can provide your buyer with an opportunity that could be easily missed by other agents.
During our current Covid-19 market we are still seeing an elevated number of contract failures, those failures can be create the opening for you buyer to quickly move into first position but only if you have coached your buyer correctly!
Watch this quick video for tips!
Check out the Webinar: 10 Ways to Win in a Multiple Offer Situation
In our changing market landscape the word on everyone's mind is - affordability.
With the combination of higher prices and higher interest rates buyers are becoming more sensitive to their monthly payments. This can often mean lower offers for sellers and tougher negotiations for buyers. Often the assumption is that the only way to solve an affordability issue is for the seller to reduce the price.
But that's actually not true - watch this powerful video featuring one of the top lenders in the nation Greg Anderson as he describes how using a hybrid approach to buy down interest rates can create a win for buyers (lower payments) and a win for sellers (a higher price).
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