What Every Good Real Estate Professional Knows about Closing a Deal
Study Local Pricing
One of the first things to study in order to finally close the deal is to examine the current price trends in your area. See if the price of homes is accelerating faster in a given area. Also check to see if the average home price in your neighborhood is more than in neighboring regions. This will give you a sense of how high the demand is in your market. Over time, you will start to develop a sense for which prices are perceived as “fair” for given properties and which are seen by potential buyers as overpriced.
Find a Catalyst
One excellent sign that an area is ripe for new buyers is the development of new infrastructure, which indicates to buyers that the neighborhood will be desirable in the near future. When potential buyers see new roads and schools being built, it’s a sign that the neighborhood is about to have a growth spurt. In addition, certain new commercial developments such as shopping centers are not only attractive to young families, but also help keep the tax base low for all potential buyers. Following the local business report is a sure-fire indicator of a municipality’s plans for development. You can also look for telltale signs like land clearing, surveying, widening of traffic lanes or the installation of new traffic lights. Fostering a relationship with your town’s planning department can also help you foresee if new developments are going to affect your real estate market.
Build a Reliable Network
Closing isn’t just about hunting for new business. By building your network of connections, you not only create potential sources of new clients, you also expand your reputation in the community. Make a goal to create at least five new business relationships in different industries to give and receive referrals. These might be mortgage brokers, professional stagers, movers or local attorneys. Surrounding yourself with a dynamic network will dramatically improve your reach and will also allow you to pay it forward when you succeed in closing a deal.
Raise the Bar
In a buyer’s market the burden is on the seller to make the home stand out from the competition. Many real estate professionals retain home stagers to help them sell their properties. These consultants will recommend cosmetic changes and staging opportunities that help make the home more attractive to potential buyers. The recommendations may be simple, such as removing clutter and rearranging furniture, or may apply to more complex projects such as repainting rooms or repurposing areas of the home.
Keep It Simple
Buyers have a lot of options to choose from in most American home markets, so rather than complicating a deal with lots of options, it’s easier to simply not give potential buyers a reason to turn down a deal. By eliminating or reducing the number of contingencies that you might have otherwise inserted into a contract, you can help make a potential buyer’s decision for them. Be flexible by not making the sale contingent upon any element that isn’t absolutely essential. By making your conditions as simple and straightforward as possible for the buyer, you’ll find they’ll be more likely to sign on the dotted line.
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