In our Jacksonville market, we’re used to seeing anywhere between 8,000 and 10,000 homes on the market, but right now we only have about 1,500. With the influx of buyers moving to Florida, it sometimes seems virtually impossible to get a property for your buyers. However, our team is closing more sales than ever, and there are three points to remember if you want to start closing more sales too:
1. Increase the number of leads at the top of your funnel. Not every buyer can afford to go above list price in this market, or they may not have enough cash to cover the appraisal difference if the home doesn’t appraise. It’s very hard to compete against cash offers, so the best thing you can do is have a lot of buyers to choose from and qualify them so you’re working with the most qualified who also potentially have cash on hand to cover the closing costs, down payment, and appraisal gap. If you show proof of funds with buyers like these, you stand a great chance of winning bids.
2. Negotiating skills. One of the things we do most often is speak to the listing agent and do our research. You have to find out what the seller wants. It may not do you any good to offer an as-is contract on a property that’s only two years old and in great condition, or offer a quick closing to a buyer who prefers to stay in the home for 45 days after closing. It’s important to offer and match what sellers want. That’s even more important than price in many situations.
3. Show, don’t tell. Let’s say you’re having trouble convincing your buyer to make an offer above list price. Don’t just pressure them into doing this—show them the logic behind it by printing out recent sales in the neighborhood and pointing out that, for example, the last three homes sold for an average of $7,000 over list price. The proof is in the paper!
If you have questions about this topic or there’s anything else we can help you with, don’t hesitate to reach out to us. We’d love to hear from you.