Recently Ryan was interviewed by HomeFinder.com for a blog post they were writing on how to be a successful agent in a market with low inventory. If you are interested the article is linked below for your reference.
This article got us thinking, particularly from the buyer’s perspective. It’s all well and good to be a successful agent. However, this is an outcome. The process from which this outcome is derived stems from creating successful buyers (and sellers, remember – this post is buyer focused). This is our interest, our passion. Very simply your success is our goal and our driver. This is where we focus our energy. From this the rest follows.
So how does an eager buyer become successful in a low inventory market? In true letterman style we have put together a top 10 list that we hope will assist those that find themselves in this situation.
#10: Be ready
Assume that somebody somewhere is in a stronger position than you. Your only advantage may be that your in a position to actually write offers, now, while your stronger competitor may have made certain assumptions that result in critical delays at the most inopportune moment. It may only be a small advantage but it is a differentiating advantage. Don’t assume that you can be pre-approved quickly, get pre-approved. Have proof of funds. Be ready!
#9 Use a local lender
Interest rates have been historically low. Every man, dog and child has been refinancing. Big banks operate from large distribution centers in places like Omaha, Nebraska. In their offices are piles and piles and piles of loan documents. They’re good people but they don’t know your neighborhood. If your loan file is challenging, say because of some coastal community idiosyncrasies, what happens? It gets shuffled to the back of the pack. Use a local lender, they know the areas, they know the issues, they can offer the same products as the big boys and they have pre-existing relationships with the agents that are handling your transaction.
#8 Be realistic
Assess your situation. If your a financed buyer writing an offer contingent on the sale of your current home should you be targeting the short-sale with geo-technical issues? Understand your strengths and weaknesses and play to, or eliminate them accordingly.
#7 Write offers
Unfortunately, the reality of the current market is that demand far outweighs supply. Multiple offer situations are prevalent. Buyers are hungry so be humble about seeking perfection. Be able to look beyond that awful green carpeting. Carpets can be changed – easily. If you like it, write the offer.
#6 Position yourself appropriately
Understand the market. If you like it, there’s a a really good chance that others do to. You may know this because your one of many at a showing. You may not because there may be no offers on the property at the time of your viewing. Stick around. If your offering there is a good chance that someone else will soon. Write the offer at an amount that will encourage the seller to accept. Nobody is saying that you have to write at list price but capture the sellers attention and desire to sell. Starting point offers designed to initiate negotiation create a window of opportunity for other buyers often leading to a higher sale price.
#5 Win the deal
Use the process protection to your advantage. Once you have an accepted offer and escrow has been opened you can investigate those nagging questions further. Can we build a second story on this house? Is that crack in the drive-way an issue? If your hell-bent on answers to these questions before writing an offer the chances are that the property will not be available when the answers come around. Win the deal and execute your due diligence under contingent contract. Things don’t look good use your contingencies to cancel the contract without risking your earnest money deposit.
Choose a Realtor with exceptional market knowledge and share with them your situation and what your looking for. Strategize. You may desire a specific neighborhood, a specific street. You may be FHA or VA and struggling to remain competitive in the market. Whatever your situation a solution exists and chances are that your Realtor will be a part of the solution if they are connected, knowledgable and creative.
#3 Relationships Count
The market is on fire. Buyers are writing multiple offers. Escrows are opening and canceling. Volatility exists. Confidence eliminates volatility. Sellers trust their agents and agents trust those that they have had good experiences with before. Choose a Realtor that has strong connections, has integrity, is reputable and that can get the job done for you.
#2 Negotiate & Close
To achieve an accepted offer it is imperative that you utilize an agent that is a skilled negotiator and capable of achieving an accepted offer. Following acceptance the agent must be experienced enough to navigate any unforeseen occurrences that occur during escrow and carry the transaction through to closing.
#1 Choose the right Realtor
Choose a Realtor that can strategize and stimulate opportunity for you where seemingly opportunity is non-existent. Choose a Realtor with a strong industry network, that is heavily connected in your desired area. Choose a Realtor with experience, integrity and knowledge. Choose a Realtor that can negotiate an accepted offer for you. Choose a Realtor that can successfully close a transaction.
Choose a great Realtor. Choose La Jolla Agent. www.LaJollaAgent.com
For further in depth analysis on this topic or to interview Ryan & Tracie as your Realtor of choice please contact Ryan & Tracie directly:
Ryan & Tracie