One tip for strategizing in a seller’s market is to find out why the owner is selling the home. Remember the negotiating tip to ask questions? This is when, and this is why. You and your agent can gently and subtly ask questions to get the owner to reveal the reasons behind the sale. For example, do they need to sell the home because they’re moving to a new city for a new job or to be near family? Do they need to sell and move soon? Has the property been languishing on the market for a while, with the price reduced due to no takers? If so, you’ve identified “motivated sellers” who are more likely to accept a lower offer and your demands — at least some of them. And you can stand your ground if they come back with a counteroffer. However, if the house has been listed and re-listed several times with a stable price, that’s a sign that the homeowners are not in a rush, and are taking their time, waiting for the best and highest offer. If you can’t provide the highest offer (i.e., it would exceed your maximum allowable budget), then it’s best you move on to a different property. DON’T BE SURPRISED BY MULTIPLE OFFERS. When making an offer and negotiating, you should expect some competition — especially in a seller’s market. Many buyers forget that other buyers might want the same home, and this can really affect negotiations. Remember that sellers are likely to be considering multiple offers at the same time, and they will make their decision based on the best offer — what’s best for them, not for you. Some sellers choose to work with one buyer at a time, sending counteroffers until the deal is done or the buyer walks away. The problem is, you won’t know. You won’t know how many buyers are looking at the property, how many other offers are out there, how many offers the seller is considering, or whether yours is the best or not. What can you do to protect yourself? Make sure that your offer is better than the other offers. How?
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