BrokerageIndustry News

Homebuyers in competition often make poor choices

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Editor's note: This is the third in a four-part series. Read Part 1 and Part 2. When buyers and sellers become caught up in a red-hot seller's market, both the agents and the principals may make poor choices that can put everyone in the transaction at risk when something goes wrong. Educate your clients When you first start working with a buyer, prepare him for the fact that there may be multiple offers on the house he wants to buy. To drive this point home, go to the MLS and locate as many recent past sales as possible where the ultimate purchase price was significantly higher than the asking price. Show this data to your buyer because it allows him to cope more effectively if he finds himself in a multiple-offer situation. Also, educate your buyers regarding how quickly they may have to respond when there is a good property in their price range. In other words, they must be available to look at new listings on a moment's notice and to write an offer on the spot. If they ...