Buyers are facing stiff competition for properties and clients will need to stand out from the crowd in order to have their contract accepted. Do you want to know how to work with buyers in this fast-paced market? Keep reading!
Supply and demand. It is as simple as that. With a limited supply of available homes and no decrease in the demand, prices are rising in most markets in Texas. Here in Collin County, buyers can expect to pay full price and in many scenarios $10,000 or more over the listing price!
Prepare your buyer it is possible they will pay more out of pocket since lenders approve loans based on appraised value of the property. This means buyers may have to close the gap between the appraised value/what they can borrow and the price of their offer. Set the proper expectations by showing them most recent closed sales data.
This is very important information for your clients to be versed on ahead of time. Make sure they understand TREC’s Third Party Financing Addendum (TXR1901) and the Addendum Concerning Right to Terminate Due to Lender’s Appraisal (TXR1948). If they know ahead of time how these forms can work to their advantage, it will save time when making offers.
Homes in Collin County spent an average of 33 days on the market in February 2021, 31 days less than the same time last year. MANY properties are selling much faster. I highly recommend setting the expectation with buyers of how quickly they will need to act in this fast-paced market.
If a buyer wants to stand out in this fast-paced market, advise them to be lenient on the number of demands they make of the seller. When multiple offers are on the table, each request is one more reason the seller may choose to go with a different offer. Forgo asking for things like closing costs or seller concessions.
Typically, buyers who commit more earnest money show sellers how serious they are about purchasing the property. Additionally, offering a higher amount in option money may be very attractive since the seller keeps this money should the buyer wish to terminate.
Due to today’s limit in inventory and the strong demand for properties, these tips can help your buyers standout and know all of their options.
Tasha Hinton is an experienced DFW REALTOR® representing buyers, sellers, and investors. If you would like more information about real estate in the DFW metroplex or surrounding, contact her at 314-283-0574 or tasha@bytashahinton.com.
