Navigating Current Deadlocks Between Buyers and Sellers
Today’s market is very different from the one we saw just a few months ago. Sellers no longer hold all the cards, and yet, neither do buyers.
What has resulted is a market in which both parties are deadlocked. Sellers don’t want to give away too much — but are still motivated to sell — while buyers are apt to use their newfound leverage and reach for the stars.
It can make for quite the challenge for agents.
Fortunately, there are ways to deal with it — and even come out on top. Want to keep deadlocks from holding your buyers and sellers back? These three tips can help:
Set realistic expectations
Making sure your clients understand the market — and what they can realistically expect to get — is critical if you want to prevent deadlocks.
With sellers, spell it out clearly: They no longer have the upper hand. Demand is down and inventory is up, so they may have to negotiate to get the deal done.
For buyers, help them understand that “more leverage” doesn’t mean “all the leverage.” While they may be able to come in at asking price or include contingencies, they can’t submit low-ball offers and ask for $40,000 in concessions if they’re really serious about a house.
Understand both parties’ motivations
No matter what side of the transaction your clients are on, understanding the motivations of both parties can help a lot. Are the sellers hoping to offload the home and move to their new, already purchased home as quickly as possible? Is the buyer’s main priority snagging a monthly payment under $1500?
Whatever it is, it gives you an idea of where to steer negotiations — and what terms may be amenable to both parties. After all, “knowledge is power,” as the old adage goes.
Find ways to compromise
Finally, look for areas to compromise on. Is your buyer wanting to come in $20K under to get a payment they can afford? Ask if the seller will agree to a concession and buy down your client’s interest rate instead. This is usually more effective at lowering a monthly payment than a price drop is, and it will net more for the seller, too (a win-win, basically).
You can also look for other opportunities to compromise. Could the seller throw in the washer and dryer? Since this would save the buyer on costs post-move-in, they may be willing to up their offer slightly. Again, this all comes back to understanding what both parties are looking to get out of the transaction.
Get more advice
Need more help navigating today’s market with your buyers and sellers? See our real estate agent resources now. You can also get in touch with an Embrace Home Loans office in your area today. Our loan officers are here to help.