There is a high demand for housing in the market. Buyers are becoming creative and aggressive in search of finding the perfect home for themselves and their families. Every now and then you will come across a buyer that will be so eager, that he will put all odds out to close a deal. In fact, the real estate market has become so aggressive that many buyers are willing to do anything to buy a home. These tactics include many desperate measures like paying the closing costs and bidding way higher than the asking price of the house.
To be honest, the aggression of these buyers is justified to some extent. First of all the most found fear in a buyer is that they will never be able to get their dream house. This causes them to lose patience every time they visit even a reasonable house. Another reason for buyer impatience is that the selling prices are increasing and so is the mortgage rate. Buyers fear that if they fail to lock a deal, these prices and rates will keep growing beyond their buying capacity.
Majority of the buyers in the “hottest” markets fear that they will never be able to find a home they like. A major chunk believes that they will have to compete with other buyers over their dream home. This makes it quite difficult for real estate agents to do their job.
Now, what should you do in such a situation? As a buyer’s agent, it is your job to find the best home suited for your client at the best price. But how do you handle the client’s aggression and frustration? The following points will help you in dealing with an aggressive client:
Plenty of fish in the sea
Firstly and most, you must make your clients realize that there are plenty of other choices for them. No house can be the only house for them, and they can always get a better deal if they will keep a little patience. Make this evident to the buying party. Show them graphs and stats supporting the point that there are many other options available in the market as well. Make your clients realize that they will always have other options, this will help you in reducing their aggression.
Negotiating in a seller’s market
In a seller’s market, the buyer does not have a lot of negotiating power. If the seller doesn’t like your offer he is going to opt for a better one. In this scenario, most of the buyers may be willing to pay a higher price for their property. Your job at this point is to ensure that your buying party holds their horses until a suitable offer presents itself. Get the confidence of your clients and make a good offer that is close to the original market price of the home. Do not let them exceed the market value of the home in their first offer as this will snatch away all the negotiation power from them. Make your offer appealing and convenient for the seller without paying more than the market value of the home. In simple words, get to the sellers bottom dollar before you get to the buyers top dollar.
Don’t let the buyer make a one-way offer
A one-way offer is the most common trait found in aggressive buyers. This offer means that the buyer gets into their heels and offers the largest amount of money, closing all further paths of negotiation. This just puts the seller on a defensive track that usually leads to a dead-end. Being the representative of an aggressive buyer, you must not allow your clients to make this mistake. Keep the negotiation path open till the very end. You might get lucky just by the virtue of being patient.
Show love, not desperation
You need to make your buyers realize that desperation is never an answer. If a buyer is overly eager to buy a home, they may end up paying a higher price for it. Rather, the buyers need to weigh their options. Invest your time in helping them find the right home, a place that they feel connected to. Sellers appreciate buyers that genuinely care about their home. They may be willing to offer a discount to buyers that care about their home. In this way, your buyers will find a home that they’ll actually love, and they won’t have to pay more than a reasonable number for it.
In short, being a Real Estate representative of an aggressive buying party can be as tough as being the real estate agent of the selling party. You need to be proactive and well prepared for dealing with aggressive buyers. The tips above will make it easy for you to deal with aggressive buyers, and help them find a win-win deal.