Auto news on Youtube Jul 6 2018

Hey! Michael Smith here with the Bluefield Group,

and today I'm here with Charlie Harrison, one of our top agents.

And we're going to be talking about the

status of the market, how hot it is - it's crazy out there!

Yes it is!

So, we're talking about the market and some strategies that you can implement when you find yourself in a

multiple offer situation.

So, in this hot market, Charlie, what are you finding that you're

running into with a lot of your clients?

Yeah! So, as Michael mentioned,

a lot of my clients are first-time homebuyers. So I've had a really good

opportunity to work with clients in this hot market, and I consider the hot market

$200,000 and under. A lot of my clients started out looking online at homes on

Zillow, Realtor, Trulia...all the online lead Michael: Redfin...

websites that we're all very familiar with. And the one question they

ask me was, "How in the world do I get into a home in this market, because every

single home I see is already under contract, it's pending, or by the time I

find out about it, I don't have enough time to get in there?"

Right. And that's one of the things that I love about our website, is [that] it's connected directly to the local MLS

- not just the Greenville MLS, but Spartanburg, Western Upstate, etc. -

and it's updated every 15 minutes with new listings. So, if something new hits

the market that fits our clients' criteria,

they can be one of the first people to know about it....

Exactly!

...which is incredibly helpful.

So, what would you recommend as a first step?

If I'm a first-time home buyer and I say, "You know, I really want to

explore this whole 'buying a home' thing... what do I do first?"

Yeah, that's a really good question.

So, a lot of the clients that I've had that

I've had great success at - [what] I consider winning in this market - is just taking

the opportunity to meet in our office for a home buyer consultation.

And that's usually...I try to keep it 20 to 40 minutes. Just an opportunity to

sit down, meet face-to-face...you know... figure out where you're wanting

to look, what price range you're wanting to be in, are you pre-approved or not,

how many bedrooms and bathrooms you need... you know, basic questions.

But it's amazing what I've found, just actually sitting down...especially if there's

multiple people buying a home...getting them on the same page.

Right!

The biggest thing I want to know is

"Are you pre-approved or are you going to be buying a home with cash?"

Knowing how quickly these homes do go,

having that pre-approval will save you a lot of time and give you an opportunity

to get into a home a lot quicker versus wanting to just go take a look at a

home and [saying], "If I like it, then I'll get a pre-approval."

Yeah, especially if you're wanting to go looking homes on evenings or weekends based on your work

schedule, and if we get into a property, you decide you really love it,

you want to make an offer.... At that point in time, they might have already have

multiple offers due within a few hours, so we've got to hurry and write something up!

And if they don't already have that pre-approval letter, they might not

have time to get in touch with a lender and get that figured out before

the offers are due, which can be a very frustrating experience.

It can. And, unfortunately, a lot of my clients do you have to go through a few homes in order

to get that one that's the perfect fit for them. But again, having that

opportunity to have the home buyer consultation gives me an opportunity to

set an expectation of, "This is what you can expect if you're looking at home

$200,000 and under, especially with multiple offers."

Yes. So let's talk, about 'multiple offers' real quick.

You know, it's a buzz word that gets thrown around a lot - "sellers market," "hot market," whatever.

Basically, all that means is there's an imbalance of supply-and-demand, right?

So, we have really low inventory, not a lot of homes available for sale relative to the

number of people who are actively hoping to purchase a home.

So for every one home (especially depending on location a price range) for every one

home available, then there might be five...ten..twenty buyers looking at that house

who put it an offer.

So, what are some strategies?

What are some specific things that our clients can do if they find themselves in a multiple offer situation

to help their offer to stand out from the others?

Yeah! Well...again, for me, I set that expectation the very first day we meet

at the home buyer consultation. I explain because you're looking at two

$200,000 and under, and especially in (I call them the "hot areas")

your Taylors, your Greer's, your Simpsonville's where a lot of people are looking,

you're most likely going to encounter a multiple offer.

So, the first thing to do is just have that expectation of if you're looking at

123 Main Street, 3 bed, 2 bath, $139,900...

if we have a showing tonight at 6 o'clock, there's probably gonna be twenty or thirty others there.

Don't let that make you nervous. Don't let that interfere with you trying to get that house...

Right. Don't get discouraged.

Exactly, yeah. Having patience. Like he said, "Don't get discouraged." Because this sometimes does

take two...three...four offers on homes before you get the right home.

And, I've never had a client that went through that scenario get to the closing table and go,

"Man, I wish that second home I would have gotten!" Instead of the fourth

or the fifth home that they ended up getting.

It's funny how that works out, you know?

Normally, the one that you end up with is your favorite. It's crazy how that works!

Exactly.

So, some concrete steps you can take -

and obviously it's going to be very dependent on your situation, the property, what you can and can't do:

Not asking for closing costs (if you can get away with it) can be hugely beneficial. Right?

So, maybe, pick a loan type that has the lower down payments that you can afford

to pay your own closing costs.

Potentially being willing to go over asking price.

You know? A lot of times people get it stuck in their head that,

"If I pay over the list price, I'm not getting a good deal..." Right? "

...and I want a good deal."

But in reality, the list price - from a buyer's perspective -

really shouldn't mean that much, right? I know on our end, we've strategically priced

homes below market value in order to create a bidding war so that homes sell

quickly for above list price, because that's what's in the best interest of

the seller, plenty of times. So being willing to go above list price (depending

on the circumstance, obviously) we can work with you to run comps and see what

similar homes neighborhood have sold for.

We definitely don't want you to overpay for a home, but just recognizing, "Hey, this home is priced low

on purpose to create a bidding war and sell quickly." Right?

Maybe [its]...being willing to put more earnest money on the line - a higher earnest money deposit....

...having a shorter inspection window....

Those are just some basic things you can do to help make your offer stand out.

And, really, we would just love to connect with you guys and talk

one-on-one about what your wants are, what your needs are, what your goals are,

and what are some things that we might be able to do in your situation to help

you win in a multiple offer situation.

So, Charlie.. anything to add?

I think...just the lasting thought is

at the end of the day, we're gonna do what's best for you.

You know, we also want you to be

comfortable with what you're offering on the house.

At the end of the day, this is going to be, potentially, the house you live in.

And so, setting that expectation of what to look forward to when you actually get those offers in....

That's pretty much it.

All right! Well guys, feel free to call us, email us, and we'd love to chat with you!

So, Charlie, I appreciate your time, man...

Yes, sir! Thank you!

...and, you guys, I'll see you on the next one!