The current market in Austin, TX is bananas for buyers…and by that, I mean challenging and crazy making with homes selling day of or before they hit the market, receiving hundreds of offers and selling hundreds of thousands of dollars over list price.
What can a buyer do to compete and win?
If you are a reading this blog, then you are probably house hunting on your own and thinking that without an agent, at least you will have the upper hand against other offers that have a buyer representative commission included.
I get it, seems logical enough.
Yet, after 16 years experience and helping hundreds of sellers and buyers in multiple offer situations and working with unrepresented buyers, I’m here to tell you my dear DIY home buyer friend, that logical thought can end up costing you a lot of time and money when it comes to buying a home.
Quick disclaimer (and I bet you knew this was coming), I obviously highly recommend you hire an experienced agent when buying a home and here are my interview questions and answers ready to review when you wake up without one single head of hair left on your head because you pulled it all out while making the 10 to 15 offers that it takes to secure a home in this market.
If you are still gung-ho to go it alone, then this is your lucky day! And here are my top 3 tips for unrepresented buyers:
Move fast. Even during the Great Recession recovery times, homes priced right and in good condition sold fast and had multiple offers in this market. Be ready to make an offer the day you find a home. Be ready to send an offer sight unseen sometimes and then do your due diligence while under contract. Do not wait and think about it. The home will not still be on the market or more buyers will be interested, and you will end up paying more. Be first, be fast, be motivated and you can secure a home. Setting expectations and providing clients with good data to make the best decision for themselves is my job. I’ve been giving buyers this same advice for 10+ years and either they listen and thank me on closing day, or they lose their opportunity to purchase and are ready follow my lead for the next home.
Have cash or use a strong local lender. I know, you love your bank. You have their bumper sticker on your car or their logo as a tattoo. All your accounts and business are there and you are a premium customer for 30 years. Blah, blah, blah, I’ve heard it all. Please google and read the reviews online for the mortgage department of that bank. Most likely it’s less than 3 stars if they are one of the larger banks. All of the listing agents know this and your offer will be at the bottom of the pile because you would take a bullet for your bank. Use a strong local lender that is well known and closes on time, maybe you will pay a little more in closing costs or a higher rate. You will thank me on moving day. Additionally, if you have cash, still offer market price (or above if that is what the market is bearing.) And if you don’t have the cash yet because you need to sell your home, don’t make a weak offer that is contingent on your home selling, use a company like Homeward to be able to make a cash offer now instead of after your home sells.
Do not ask to reduce the commission. Here is where that logical mind of yours will do you wrong. Consider this scenario. You, unrepresented buyer, call the listing agent and say, “please help me tour and write an offer on this home, spend hours with me answering my questions, and do the job that someone usually gets paid to do for free.” I’ve helped many unrepresented buyers write offers on my listings and I do not decrease my professional fee anymore when there is double the liability and double the work to manage the transaction successfully. And in the current market, how many agents want to help you for free when multiple offers are rolling in and the phone is ringing every 10 minutes? You will not get the attention, service or advice you will need to have any chance of securing that home. Unless you are like me and have been selling 50+ homes a year over the last decade, do not tackle this goal on your own. A good agent will guide you and end up saving you way more money than what you are trying to save by not using one.
I hope you found these tips helpful! Good luck in your home search, whether you go it alone or hire a professional. And thank you for considering our team when you are ready.
Comments(0)