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    Working With Buyers in a Low Inventory Market, Part 1

    Inventory is reaching record lows. This may be good for sellers, but it’s not necessarily for buyers. So how do you help your buyers prepare for the challenges that may come with low inventory? In Part 1 of this series we help you make sure your buyers are market-ready.


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    Make sure your buyers are ready for the market

    Properties are moving quickly, sometimes with multi-offer situations, so encourage your buyers to get their ducks in a row early! Here are some ways you can encourage your buyer to be prepared.


    Take time for Mortgage pre-approval.

    This one is probably obvious, but in a seller’s market, there’s no time to wait on financing. You also don’t want to set your buyers up for disappointment by showing them homes they can’t afford. Don’t let your buyers skip this crucial first step. Encourage them to be pre-approved even before that first showing


    Prepare for the true cost of home ownership.

    Owning a home comes with many costs. Help your buyers understand these costs.
    • Explain how utilities, taxes, insurance, and interest rates can impact their bottom line
    • Run estimated buyer’s closing costs in their desired areas/school districts/prices to show them what their monthly payments may look like, and how taxes and down payment amount can affect the final numbers. This will help you better understand what price they are truly comfortable with spending and not just what price they are approved to spend.

    Talk through the important motivations for the move.

    Sometimes a decision is made to move and all of the reasoning and why hasn’t been fully discussed. Have these conversations with your buyers so you know you’re both on the same page.

    Here are some questions to ask:
    • Is there a timeline? Lease ending? New job starting? Addition to the family?
    • What’s more important timing or price?
    • Who else is involved in the move: Kids? Inlaws?
    • Any special needs?
    • Will a seller's agent be needed as well?

    Fill out a checklist to determine wants vs. needs.

    In a low inventory market, your buyer might not find the house that checks off everything they want. Preparing a wants vs. needs checklist will help you evaluate the available properties in a useful way.

    Don’t have a checklist? Use this sample.



    Valerie Stephan • Customer Success Champion

    Valerie joined TREND in 2001. She is Customer Success Champion who through training and office visits, provides subscribers with invaluable service for their real estate needs. Meet more TREND staff...


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    3 Comments
    1 - 3 of 3 Comments
    1
    Vaishali Senjalia
    6/23/2017 1:18 PM

    Agree with you on everything you've written in your article, in fact multiple offers and malpractice are so rampant that I keep excellent relations with my mortgage person so that even if I need a pre-approval late at night or early in the morning-she gives it me.

    TREND MLS
    5/23/2017 2:46 PM

    Karen,

    Yes, you can run Buyer's Closing Costs through TREND. Go to Finance & Statistics and under Financial Tools choose Buyer Closing Costs. You can learn more about this tool by going to Support and typing 10478 into the search box.

    Emily Schaffer
    TREND, a Bright MLS

    Karen Migala
    5/22/2017 6:22 PM

    Do we do this through trend? "Run estimated buyer’s closing costs in their desired areas/school districts/prices"

    1 - 3 of 3 Comments
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