Buyer Fatigue is REAL.
Here are some tips to handle it
Homes are selling faster, and for more money, than ever before in recent history.
That is particularly true in Northeast Florida, one of the top areas drawing an influx of population from high cost/high tax states.
For Buyers and their Agents, this market is brutal, requiring lightening-speed responses and previously unheard-of concessions such as all cash offers with zero contingencies.
It requires playing a long game, and maintaining mental fortitude to win a home.
Agents in today's local market could have 100 Buyers, but only a handful with contracts.
The amount of time and effort required to secure success for Buyers is growing, taking a toll on some agents’ potential income for 2021, as well as the mental health of weary Buyers.
Tip for Buyers.
Whom you choose as your Agent is more important than ever before.
With this aggressive market, you have to get connected with a top- producing Agent who has deep roots in the community in which you are seeking to buy. That means you have to do as much due diligence as possible before making your Agent choice.
What are their reviews?
Are they easy to get hold of?
Do they follow up immediately?
Have they represented Buyers and/or Sellers in the neighborhoods you want?
Tips for Buyer Agents.
#1. Set Buyer Expectations Upfront … and Get Real.
Start with sharing data with your Buyers about the hard realities of buying in this market. Days on market, types of offers winning bids, number of homes available, the whole picture.
And don’t just talk about the sad state of affairs for Buyers; share visuals of what is going on.
Although they may not truly appreciate the impact of that sales data until they make – and lose--their first offer, it sets the stage and makes it a bit less of a shock.
#2. Focus on Your Buyers’ Criteria and Remind Them of Their Motivation.
After Buyers lose their first few offers, they typically start getting frantic and want to see, and even bid on, homes that do not fit their criteria. They're desperate and frustrated and they may start blaming you as the Agent. At that point, you will remind them of the data you shared during your initial consultation!
It's your job as their Agent to pull your Buyers in, calm them down, and remind them about what is motivating them to buy and what their criteria are.
#3. Show Them the Math on Rent vs Buy.
If your Buyers start back-pedaling about buying, suggesting they may just have to rent, show them the numbers comparing the economics of renting vs buying. That should re-fuel their motivation.
#4. Use Showing Agents.
Keeping up with this market is exhausting, not only for your Buyers, but also for you if you don’t have leverage.
So, you will probably want – and need -- to take an occasional day off but still make money.
That's why you'll want to have a handful of colleagues who can help you show homes on a Sunday, for example, and you can do the same for them.
Having a brokerage that acts as your support net, with team-oriented colleagues, can make a huge difference for you and your Buyers.
Or, you may have two buyers request the same exact time to see different properties.
#5. Stay Professional and Make Connections.
Agents want to work with other Agents who are top professionals.
In fact, the relationships you have with other Agents may be an important factor in getting your offer accepted, especially when dealing with questions about Buyer qualifications.
Those Agents who have been professional in their dealings and treated their colleagues well over the past few years, are benefitting from their good deeds today.
#6. Network with Other Agents for Off Market Listings.
Real estate is all about relationships, right?
And that includes both your customers and your colleagues. So, start sharing what your Buyers are looking for with other Agents in your marketplace. You may be able to do some matchmaking and score an off-market sale or otherwise beat out your competitors.
#7. Remind Buyers About Market Dynamics.
At some point, your Buyers may start complaining that they're overpaying. That’s when you remind them that real estate is just like any other market -- it changes daily and is priced by supply and demand.
You cannot overpay because the market sets the price. In fact, when your offer wins, you are literally paying market.
Clarify with your Buyers that market pricing is not the same as bank appraisals.
Appraisals are simply a risk management tools for banks – and they are typically always behind the market. Appraisals generally follow the market; they are not a reflection of market value.
Stay focused, garner your energy, and head onward to the battle! And, for those of you who win the majority of your offers, bravo!
On one of our future posts, we will share our best practices to getting offers accepted, too!