Market data for real estate can be a blessing when it comes to helping your listing clients respond to off-the-wall, low-ball offers. As we all know, market conditions fluctuate. In one instance, you have sellers enjoying multiple offers on a property and achieving a nice percentage increase above their asking price. And then the economy changes, and the equation reverses. It is during those times that homeowners will really come to depend on their agent for assistance.
When it’s a buyer’s market, there are the reasonable buyers who might come in a little low on an offer. Then there are the extreme opportunistic buyers. Buyers who take an almost predatory approach with a ridiculous “take it or leave it” type of stance. As we know, in some situations, sellers will cave in. Usually because they have to. But many homeowners might think they have to accept an unreasonable offer during a downturn, when in reality, they really don’t.
Unfortunately, in these situations, sellers may believe their home is still worth a decent asking price and become emotional when these crazy offers come in. They feel insulted. Angry. It can get ugly. Experienced agents are familiar with this dance. There are tools they can use to help that homeowner feel confident about their price point with strategies on how to deal with any hard-driving buyers.
This is where current market data for real estate comes in. An agent can use this data to show a seller how they are going to counter-attack any insane offers. They can point out how they can use this information to persuade a buyer’s agent to convince their client that the offer is way out of line.
Because here’s another side of the emotion equation: A seller might become in love with that property. The more they negotiate, the more they want to own that house. And that is when they are more likely to be receptive to hard, factual market data for real estate that gives them a picture of the correct asking price.
Market Data for Real Estate Helps with Negotiations
With any negotiations, savvy business people know it’s best to try to keep emotions off the table. A low-ball offer comes in. Knocks everybody back for a loop. The smart thing to do is not get into an argument. Or, try to one up the buyer and tell them the asking price just went up another 10%. In most cases, the smart thing to do is come back with a counter-offer, even if it is a small reduction.
Negotiating experts say it’s best to always try to keep discussions moving. Keep everybody at the negotiating table. There are other factors that can be negotiated as well that would be favorable to a seller such as closing dates, down-payments, pre-approved mortgages, etc.
That’s also the time to present your market data and the comparables you have found that justify the seller’s asking price. There is a plethora of market data for real estate that can be obtained from national aggregators such as Home Junction. The aggregators go through all the effort of tapping into relevant sources – property records, tax assessments, recent home sales, and other historical data. They verify, organize and filter that enormous number of data points.
All the agent has to do is add some software code to their website for a feed. That code immediately lets them display all this relevant information on any page on their website. Place charts for recent home sales and trends in home prices right alongside that seller’s listing.
Point out to sellers how you are going to show buyers how those charts are relevant to that neighborhood. These are not charts that show national, county or city market data. Or by zip code. These charts show the data for that specific neighborhood or subdivision where the property is located.
Sure, home prices nationally might be soft. Maybe inventory is high for that particular county. However, maybe those neighborhood charts show a different picture. Perhaps home sales there have been on the rise. So have prices. Show them some comps.
“Hey, Mr. Buyer, if you look at this market data, homes in this area are going fast. You might not only think about raising that crazy offer up to a reasonable level, but you better act fast because this property in this desirable community may go quickly.”
Hyper-Local Data Gives Agents More Negotiating Power
Surveys of home sellers show that one of the traits they look for in a listing agent is someone who can negotiate on their behalf. When the seller’s market is rocky, they are going to want that reassurance more than ever. After all, this is probably their most valuable possession. Add that hyper-local market data for real estate to an agent’s website. This way, not only can an agent tell them how they are going to negotiate hard on their behalf, they also have the tools to display the cold hard facts to back them up.
Buyers certainly aren’t perfect. Sometimes they come from out of town. They might not have any idea of the local marketplace. Or they forget how homes values in different neighborhoods can vary. Same with the volume of homes sales. Sure, they might love that one property for sale in that awesome country club. But they might not realize how many other people are also looking to move into that awesome country club as well.
Agents are familiar with these scenarios. Now they can easily add market data for real estate to their website, by neighborhoods, to use facts to get those buyers’ heads out of the clouds and convince them to come back with a sensible offer worth discussing.