We’re no longer in a frenzied sellers’ market. Bidding wars have fallen off, price reductions are getting more common, and buyers finally have more options and more time.
It’s quite an adjustment, to say the least.
In fact, your clients may not even know the market has changed — at least this much.
Want to help them understand today’s shifting market conditions and ensure their success? Try these four tips.
1. Encourage them to move cautiously
There’s no need to move at lightning speed these days. According to Realtor.com, the typical house was on the market for 50 days last month, giving buyers much more time to shop around and consider their options.
Demand has also pulled back a lot thanks to higher mortgage rates. As a result, buyers have more leverage in today’s market. Unlike a few months ago, they can (and should) include contingencies, which protect them if inspections, financing, or appraisal issues arise.
2. Prepare them for negotiations
The days of paying over asking price and accepting whatever conditions a seller wanted are over. Buyers today have more negotiating power, and in many markets, that can equal price discounts, repair credits, or even concessions, which they can use to reduce their interest rate or lower their closing costs. Now is a good time to improve your real estate negotiating skills.
3. Make sure they’re clear on what you want
In today’s market, buyers need to know what they want — because they can likely get it, at least with a little shopping and some negotiations. Do they want a seller who will help buy down their mortgage rate? Furniture or appliances included? A flexible closing time? Have them write it all down for you. (Just make sure they know that nothing is guaranteed!)
4. Educate them on future options
Many buyers are worried about mortgage rates these days, so talk to them about what their long-run options are. Walk them through how refinancing works, what future mortgage rates look like, and what it could all mean for their mortgage payments down the road. Then, encourage them to “marry the house, date the rate.”
If you want an experienced loan officer to walk them through these options, reach out to an Embrace Home Loans office in your area today. Our experts are happy to help. We can also discuss ways to potentially lower their rate now with points or through improvements in their credit score.
