Matt Weaver joined me recently to talk about how to have success in this real estate market. Here’s our full discussion.
I recently had a great sit down with Matt Weaver where we talked about winning strategies in the real estate market. We talked about where the market is, where it’s headed, and how you can come out on top.
I’ve been getting a lot of questions about how the real estate market is doing. Not only from clients, but from fellow agents as well. It’s a popular topic these days. I had a conversation with an agent yesterday that told me the market was shifting. When I asked them how they came to that conclusion, they told me that they’re seeing tons of price reductions on Zillow. However, that doesn’t necessarily mean that the market has shifted, it just means that the seller has missed the sweet spot when pricing their home. When you get the formula right, there are still plenty of buyers out there and we’re even seeing multiple offer situations.
If a home is overpriced right out of the gate and the listing gets a bit stale, that’s when price reductions happen. A lot of times, the reduction ends up being lower than the original price if they would have just priced the home properly from the beginning. I believe that a home is most valuable on the first day it hits the market. The longer it sits, the less interest there is out there from buyers.
75% to 80% of the buyers in our market are financing-dependent. The best offers many of our sellers get are financed offers. With financed offers, you have to deal with an appraisal as well. You can sell to a cash international buyer, but they are savvy and probably won’t offer you top dollar even if they fall in love with it. If you want top dollar, there are definitely going to be some financed deals in the mix to consider.
With these kind of offers, terms are extremely important. One of the things we have learned is which is the best deal to take. We want to accept the one that has the best chance of closing. We don’t want to look at these offers just based on price. We look at the agent, the lender, and how bad the buyer wants the house. Every deal has bumps in real estate, so having someone who will fight for the home of their dreams matters. If you’re that buyer, we’ll give you a chance.
There are a few terms that are most important in an offer, especially for sellers who plan on buying a new home. A short loan approval is important, as is a quick appraisal. The more contingencies we can remove, the better the offer looks. Having everything lined up gives us a real competitive advantage. Although people like to say “Cash is king,” we win against cash offers all the time with the right terms and the right contingencies.
Here’s an example of one of those times. Two months ago, we were up against a cash offer with a 21-day closing. We were able to arrange a similar offer in terms of price, but with just a 10-day close and were able to secure the transaction. Cash doesn’t scare us when we’re representing a buyer. I’ll take the right lender, like Matt, over a cash buyer. Having a great lender is so key to our success.
In summary, it all comes down to the popular question, “Is it the right time to buy or sell?” In our opinion, it’s the perfect time to buy and sell. A lot of people might be afraid to buy right now, but if you come in with a strong strategy, there’s no reason to be scared.
What it really comes down to is if it’s the right time for you to move on in your life. If it is, it’s always a great time to sell. We can help both buyers and sellers win in this market simultaneously. For buyers, interest rates are still at an all-time low compared to where they were in the past.
There’s always a way to position yourself to achieve your goals, and we would love to help you with that. If you or anyone you know is interested in buying or selling a home any time in the near future, don’t hesitate to give us a call or send us an email. We would love to hear from you soon.