Buyers Have More Bargaining Power Right Now. Help Them Use It.

Realtor.com just released its Housing Forecast Midyear Update and in case you missed it, I picked through and found a few encouraging nuggets for agents, brokers and the industry as a whole.

Inventory levels are rising in many markets, sellers are adjusting their expectations and buyers in many markets have more room to negotiate on price, repairs, closing costs and other terms. That’s good news for agents whose clients have been sitting on the fence (pun intended), waiting for conditions to improve.

A few more points from the forecast:

• Existing-home sales are expected to rise 1% to a total of 4.1 million this year.

• Housing inventory is projected to increase 3.6%, and the typical monthly mortgage payment is expected to come in 1.9% below last year’s figure.

• First-time buyers accounted for 35% of purchases in May, up from 30% a year earlier.

These are all great reasons to reconnect with buyers who stepped back amid limited choices and higher borrowing costs. They’re going to need your help reading their local markets, identifying the best concessions and sharpening their negotiation pencils.

Here are five ways to reawaken those warm buyer leads:

1.  Go through your database or CRM. Look for qualified buyers who stepped away because of limited choices, high costs or another obstacle.

2.  Talk to them about what’s changed. Share local inventory gains, price cuts, longer market times or seller concessions that apply to their search.

3.  Share a handful of relevant listings. Choose homes that may have some wiggle room on price or terms, such as those sitting longer than the local average.

4.  Reconnect them with a lender. Ask about updated payment scenarios, loan programs or rate buydowns that could change the numbers.

5.  Give each buyer an easy next step. Suggest a quick call, updated lender review or tour of two or three homes, then put the follow-up on your calendar.

Good luck!

Tips adapted from The Real Estate Agent’s Business Planner, 5th Edition.