Now may be a great time to troll the real estate market.  Yet there is a fine line between reeling in a sweet deal and alienating a seller.  How do successful buyers tackle this nuance?

Takeaways:

  • July and August represent a strong buyers’ market in residential real estate

  • Writing well-researched and calculated offers is the key to capitalize

  • An experienced agent will take the lead and could make all the difference

Late summer represents a unique opportunity for home buyers.  

The lull between the spring housing rush and an active fall market can put motivated sellers on edge.  Back to school is on the horizon and the snow will fly soon thereafter.  Sellers may face the daunting proposition of sitting on a property until spring, or settling for a lessor price.   

Buyers can capitalize on these emotions when fishing for a good deal, but only if they keep three key things in mind.

1. Carefully scout your honey hole

Writing a purchase agreement today is simple.  Because of this, many rush into getting something on paper without doing much research.   This can be a mistake, particularly when your offer is well below list price.  

Savvy buyers look before they leap.

A first step prior to any offer is outreach between agents.  A strong buyer’s agent is experienced in gathering intel about a listing and seller.  This is important as a seller’s goals, urgency and state of mind can differ greatly depending on circumstances and attitudes.

      Is this sale part of …

              • A divorce?

              • A foreclosure?

              • A downsizing or upgrade?

The scenarios behind why a property is on sale and the mindset of the seller are diverse and varied, but they are always relevant.  Careful consideration prior to writing an offer can assure that the offer is focused on common goals between the buyer and the seller.

2. Cast and retrieve

Armed with a good understanding of your seller, you are ready to write a compelling offer.  Empathy with that seller is the key here.  Remember, they may already be defensive when reviewing terms, feeling like they are already compromising on price.  Your job is to give the appearance of compromise on your side.  

Your agent can help you here, by writing an offer that is tailoring specifically to appeal to them.  Would an expedited closing help?  An all cash deal?  A willingness to forgo trivial items that show up in the inspection report?  

Once you understand a seller’s motivation, your agent will know precisely which levers to pull to put forward your best offer.  A knowledgeable buyer agent makes sure their client’s offer is strong for both parties and that it is presented with sensitivity and tact.

Following the presentation of your offer, the seller may reject or accept your offer as written, but more likely than not you can expect a counteroffer.  The next piece of advice should help as you consider next steps.

3. Know when to fish or cut bait

The final key consideration is a reminder.  The most powerful factor in any negotiation is the willingness to walk away.

If you know your top price and non-negotiable terms for a given property on the front end, you will know when to play this card.  You could be walking away until the situation changes, or you may be done altogether.  Either way it will be a rational decision, one that is divorced from the emotion of the moment.

Good luck

Late summer can be a great time to find and purchase the home of your dreams. By keeping these three considerations in mind and engaging a real estate professional with experience in your area, you too can enjoy the benefits of a true buyer’s market.