Bidding Wars Cooling: Prepare Now for a Market Shift
Some frustrated and discouraged buyers dropped out of the market, but many may jump back in as inventory grows, properties linger on the market and bidding wars ease.
CHICAGO – The hallmarks of the current market – low inventory, multiple offers and rapidly selling properties – won’t be around forever, and even experienced agents should prepare for changes.
To prepare, agents should stay in touch with buyers and even sellers they previously worked with – ones who unsuccessfully tried to succeed in the current market. Agents can send them relevant information about market changes, such as such as new inventory or construction.
As the market cools a bit, agents may discover that they need to show more homes over a longer period of time. They should also prepare to filter buyers more to avoid “tire kickers” who say one thing but end up doing another. They shouldn’t be afraid to ask qualifying questions and set limits on how long they will work with such clients.
In addition, agents should study comparable sales and analyze current market conditions, both locally and nationally. As markets change, the level of prep for a sale may also need to change, along with the frequency of communication and updates.
Moreover, it’s important for a new agent to understand what a seller’s closing costs are in their market, including title or escrow fees. Buyers should understand the provisions that allow them to get out of a contract and the timeframes for doing so. And buyers should be told to send all contract questions and interpretations to the agent rather than friends or relatives.
Finally, agents should stay current on the latest real estate information. They can do that by reading, attending conferences and webinars, and simply talking to agents, appraisers, builders and lenders.
Source: Inman (08/03/21) Ameer, Cara