Ninja Negotiating Strategies for Buyers in a Low-Inventory Market



Ninja Negotiating Strategies 
for Buyers in a Low-Inventory Market

 We have super-low inventory in the Dallas area market, and that means homebuyers have a lot of competition.  Multiple offers, over asking price sales, and homes going under contract in a matter of hours are just a few things buyers have to deal with today.

 So how do buyers position themselves to get their offers accepted?  Believe it or not, it's not always about price.

 1. No Financing Contingency

 If a buyer is FULLY APPROVED for their home loan, then a seller is much more likely to choose the offer than someone who is bidding a higher price but still needs to apply for financing.  This means that the buyer has already turned in tax returns, bank statements, verified funds and employment, and received underwriting approval.  This is the next best thing to a cash offer in the seller's eyes.

 2. Shorter Option Period

 In Texas, our contracts do not include an "inspection period".  Instead, we have what is called an option period.  This is negotiated between the buyer and seller and allows for the buyer to terminate the contract within a certain period of time.  Offering a higher option price and shorter days can show good faith for a seller and can push an offer over the edge versus others.

 3. Free Leaseback to the Seller

 On occupied homes, the sellers may need some time to move.  Especially since they might have to compete in the same type of market for their next home.  Giving the seller some extra time after closing at no cost can be a great way to have the seller choose an offer over another.

 These are just a few tricks that we advise our clients to use to help them win, but it is the buyer's decision.  Knowing the market is half the battle!



Start you home search today at 
Thinking about selling?  Get a FREE home value report
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Q1 2015 DFW Housing Market Update


Q1 2015 DFW Housing Market Update

The market is in full Spring-time swing, and things are just as hot as they were this time last year.  Let's take a look at the current market stats:


Days on Market:

 Median days on market rose 11.5% DFW wide to 29 days.  That's not too bad.  Sellers can expect to sell in less than 30 days if priced correctly.  Buyers need to jump on properties quickly in order to find themselves in the home they want.







Inventory:

The amount of residential real estate for sale fell another 13.9% to 3.1 months.  This is still a low since the bubble burst in 2007-2008, and the key indicator to follow for price appreciation.  Anything below 4-5 months represents a "seller's market".







Pricing:

The story that everyone always wants to know is "Where are home prices?"  Well...they're up!  DFW's median home price rose another 7.9% in Q1 2015 to $189,900.  Buyers should buy now!








Sales Activity:

Sales have definitely slowed, even though consumer confidence remains high.  Only up 1.6%, 90,263 residential sales occurred in DFW over the past 12 months.  Sales remain flat mainly because inventory is so low.




  


Advice for Buyers:

 If you have been wanting to buy...BUY NOW!  Don't wait any longer.  It will only become more expensive over the coming years with rising prices compounded by rising mortgage rates.  In addition, rents have been on the rise as overall housing inventory shrinks.  

Our VIP Buyer Program will take care of your entire buying strategy, including inspections, appraisals, financing, insurance, etc.  We will help you find the best home while saving you $1000's in unnecessary expenses. 
Start you home search today at 
Advice for Sellers:

 If you've been waiting for prices to increase, here we are!  Take advantage of this great seller's market and get top price for your home!

 We're so confident that we can sell your home in 59 days, we guarantee it.  We offer a list of innovative services that the average real estate agent doesn't have to offer.  If you've been wanting to sell, call us today!

Thinking about selling?  Get a FREE home value report


Scott Neal Real Estate
214-295-5060
info@scottsealrealestate.com
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5-Step Negotiation Process



Our 5-Step Negotiation Process

 We break the home-buying process down into 4 distinct phases: Preparation, Search, Negotiation, Closing.  Across these phases are over 80 different variables that ultimately impact the outcome for the buyer.  In order to help our clients potentially save $10's of $1000's we must proactively manage these variables.

 Today we'll focus on the Negotiation Phase.  This is where the rubber really meets the road when it comes to actually getting the house a buyer wants to purchase.  And since we negotiate real estate contracts on a daily basis, we have the experience to give our clients a position of strength.

 We've developed a very simple negotiation process that has 5 steps:

 Step 1 - Seller Interview

Once a shopper has selected the house they want to buy, the first step before any offers are written is the seller interview.  We want to know as much information about the property and the seller as we can get a picture of the landscape.
 
Step 2 - Market Analysis

A full market analysis of the market conditions and the comparable sales will help to establish pricing for the property in question.  We want to make sure that the price the seller is asking is reasonable given the market conditions.
 
Step 3 - Bottom-line Analysis

It is essential to not just focus on price, because there are many other costs involved in the closing.  A bottom-line analysis will alert the buyer to the estimated total costs associated with the down payment, closing costs, monthly payments, etc.
 
Step 4 - Offer Presentation

There is a strategy and etiquette to presenting an offer.  Just like the seller wants to present the house in its best light, we also want to present our offer in the best light.  You may have a different strategy of how to present an offer in light of the information gained during the seller interview.
 
Step 5 - Due Diligence

Part of the overall negotiation process is gathering information related to condition, value, chain of title, etc.  We have all of the people needed to make sure that our clients have the data they need to make the best decision: inspectors, appraisers, surveyors, contractors, title researchers, attorney's and more.  This will give the buyer peace of mind that they are buying the right house at the right price.


If you've been thinking about buying, put us to the test.  Our VIP Buyer Program is designed to ensure that your home-buying experience is top-notch!



Start you home search today at 
 
 
Thinking about selling?  Get a FREE home value report



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