5 Tips To Win In A Sellers Market
The 2021 housing market might be one of the most stressful markets to win in ever. Due to low inventory and historically low interest rates demand is at an all-time high. Sellers are in a sticky situation if they want to sell for a large profit but not be left homeless. Thus the inventory crisis that is leading to an average of four offers PER listing in the Gig Harbor, WA market.
Here are five pro-tips from Gig Harbor’s top real estate agent, Paige Schulte, on how to win when competing in this market so you can get your dream home.
1) HIRE a LOCAL agent who knows the market.
They should be able to tell you how quickly homes are selling and what type of offers are winning, and they should also be able to tell you what is happening in YOUR price range. Make sure they aren't working with too many buyers in your price range—with low inventory you don't want them representing another buyer on the home you want (awk-ward!).
A local agent will know the pulse of the market and they'll have relationships with the agents in the area. They will know the listing agents, and those relationships can help you learn more about a home and the seller’s motivations, and there’s familiarity with the transactional history that the agents have together. A good, local agent can also seek out off-market homes since they are out and about in the community.
“But Paige, what if my bestie is an agent but works an hour away from where I want to buy?” Or she might even live 10 minutes away but doesn't have any relationships in that area. My suggestion would be to find an agent rocking the market you are buying in and ask if they'll give a referral fee to your bestie (most will). This way she will be taken care of and YOU’LL get your powerhouse of an agent on your team. Who you work with matters.
A good agent will also prepare your mindset of having to write 2-5 offers before you win. This part sucks, but the Gig Harbor housing market is currently seeing 4 offers on average on listed homes. You guys! I am even seeing multiple offers on land and new construction. It’s bananas.
“Paige helped us purchase a dream vacation home in Gig Harbor, and we literally couldn't have done it without her,” said buyer Michelle Husain. “Anyone can find homes on the internet and unlock doors for buyers. Paige did so much more than that. She found us a home that wasn't on our radar, negotiated with the sellers, and essentially eliminated the competition we were facing in a very hot neighborhood and market.”
2) HIRE a LOCAL lender, one that agents in the area trust and will be a good communicator and close on time.
This is a big deal when it comes to getting your offer accepted. A great lender will also get you through underwriting, which means you are approved and all you need is an appraisal and a home (whomp whomp, this is the hard part). By getting through underwriting you are making yourself a very competitive buyer—you could close in as few as 15 days! Also, a rockstar lender will call the listing agent to vouch for you and your financial strength. Make sure your agent reminds them to do this vital step—it makes a difference.
3) prepare to buy what you see.
Inspections are challenging. Many buyers are waiving their inspection contingency and taking homes as-is. Have your agent line up an inspector so you can get a pre-inspection during the offer review period. That way you can look for major defects and safety items before you present an offer and you can write the offer confidently knowing what you are buying. For this reason I keep an inspector on retainer for my buyers so we are always ready to inspect a home.
Remember, in this market you will not get the little tiny repairs, so no need to pay for a full inspection on every home, just pay to "look under the hood" of the big ticket items like crawl space, attic, roof, furnace, electrical panel, water heater, sewer, well, and septic. A mini inspection is an option so that you can catch material defects.
Do everything you can to avoid waiving an inspection, but in this market it is more and more common.
“Paige was able to quickly find us a listing and arrange a showing in less than 8 hours,” said buyer Stacey Tull. “She helped us write a competitive offer and secure the property within a day.”
4) Be ready to pull out your piggy bank.
Right now sellers are getting 2-10% OVER list price when they sell, so that means they stress about if the home will appraise. In many cases buyers are offering to make up the difference if the home appraises for less than the contract price. This is called “additional cash down in the event of a low appraisal.” Buyers are essentially guaranteeing the purchase price they write on the contract regardless of the appraisal. This is a big deal to the sellers and often the deciding factor when a buyer wins or loses. It has not been commonly used by agents but the best agents know how and when to use this to win.
5) make sure YOUR agent calls the seller’s agent to find out what is important to the seller.
Besides “all the money” the seller could want a fast close or a long rent back. Finding out the motivations of the seller is a big deal when the best offer could be a tiny detail that the seller had wanted and no one else knew.
Have patience—it’s a slog right now. It’s going to take a few offers to get accepted. But know that housing prices are still increasing in value. While we won't go up like this forever, prices aren't coming down either.
In 2021 the cleanest contracts win. And clean means no or very few contingencies, all the money, guaranteed purchase price, and maybe your kidney.
Good luck out there.
XO
Paige
Have more questions about how to win as a buyer or get the smoothest transaction ever during your home sale? Contact me today to chat.
Learn more about Buying with me or Selling with me.