Capable of writing competitive offers, and
has the tools in their bag to make your offer stand out.
As stated in the opening blog of this series, real estate agents in Louisville are facing some of the most competitive times in the history of recorded market analysis. Average days on market is 20-30 days lower than last year’s averages, and absorption rates are teetering around three months. Available homes are down 50% from previous years, and home prices are up 3-5%.
All of these data points create a very challenging scenario for real estate agents in the Louisville market. When you are deciding who will represent you as a buyer, one of the questions you need to ask and factors you need to consider is the capability of your real estate agent to write competitive offers. Making an offer stand out is very important. Did your agent pair you with a reputable local lender? Some sellers will not entertain, or will take a lower offer, if the lender is local and has a great reputation.
Does your agent have a reputation of being professional and easy to work with? When deciding on which offer to take, many selling agents will guide the buyer to a real estate agent who has a good reputation or who they have worked with before. Has your real estate agent contacted the seller to find out favorable terms.? A seller may need a certain net or sometimes a certain gross. Sellers may need to move quick or may not be willing to do repairs. These variables, along with price, make offers more or less attractive. If a seller wants to move quickly, they may take a lower offer that has a quick closing versus a higher offer that would take at least 30 days.
Lastly, does your agent know different offer structures like an escalation clause or when to ask for closing costs or not? An offer with an escalation clause allows your offer to compete against higher offers at predetermined increments. Requesting the seller to pay for closing costs can break a deal. Closing costs are deductions against a seller’s net proceeds. In a competitive market, any deal without closing costs attached is more favorable. Each situation is different. Days of offering full price and winning are behind us, currently, and your real estate agent will guide you through the best offer structure.