How Do I Win This Bid? Buyer's Frustration in a Seller's Market

By
Real Estate Agent with Mapleridge Realty, CT 203-206-0754 REB.0759001

How Do I Win This Bid?  Buyer's Frustration in a Seller's Market

Across the country, it is a fury of sales created by possibly the pandemic and low interest rates as a result.  With people looking to make their families safe, home sales are in a trend that has not been seen ever.

The pandemic has put working people into a virtual job, where they are working from home and not needing to go into their actual place of work to be productive. In fact, people are realizing that they can be more productive working remotely as there are fewer interruptions and distractions from co-workers.

This all feeds into the demand for more space or in the case of renters, finding a home of their own and paying rent instead of someone elses' mortgage.  

 

So we start to look for houses only to find that there are few options. Already the ideal dream becomes hazy. If the search started without contacting an agent, then the shock of seeing a house being under contract within short days of going on market starts to feed the anxiety.

Find a Professional REALTOR® There are many real estate agents that are more than willing to secure you as a client and get you into a house. It is, however, paramount to find an agent that has the knowledge and experience to offer the counsel needed at the beginning of the home search  that makes the process more productive and less stressful.

Getting Pre-qualified for Purchase  Knowing what you can buy is made easier when you know how much a lender is willing to afford you in a mortgage. Nothing can be more frustrating than believing you have found the ideal home and then getting the reality that it is well beyond your purchase ability. 

While sitting with the lender it would also be beneficial to start the process of getting pre-approved which involves a thorough release of your personal financials to the lender including banking and tax records. As this is normally a part of the approval process once a home has gone under contract, you are now shortening the amount of time needed to get loan approval which may be important to some sellers.

Also, the type of mortgage you will be getting is important to some sellers. In a highly competitive market a high price on a contract with a government backed mortgage may not be in your favor, as the market is competitive and the simpler the better to win the bid. 

Keep contingencies to a minimum An offer to purchase with requests for seller concessions gets put behind a cleaner offer. If the overall condition of the house appears to be sound, it may help the case to request inspections for information only. If something shows itself that was not included in the property condition disclosures, it may be something that the seller is willing to credit. In our area, it is not uncommon for a buyer to absorb an item within the scope of the inspection if it's repair or replacement is under $200.

Down payments to Ease Mortgage Amount  To ease the burden on an appraisal for the mortgage, it would make the contract more attractive if the buyer were putting down some significant money on the purchase to make for lower mortgage payments, and not necessarily to avoid PMI,  If the purchase amount was already over asking, which is most likely the case, money down is the friend of both the seller and the buyer and could make the offer more attractive.  

 

Re-Evaluate the Needs of the Purchase  After losing a couple of opportunities, the buyer should re-valuate the wish list for the purchase.  This is more practical especially if the buyers are younger and this is their first purchase.  If the purpose is space and not paying rent, then the idea should be to not look for that forever home and focus on something that is more practical and manageable.

Many of our parents started out small and they purchased as the needs became greater. Also, for a first time home buyer a smaller house is a better way to ease into the mindset of home owner as now all the maintenance becomes your responsibility and not the landlord's.

Many families make 3-4 purchases of homes in their lifetimes, so buying the biggest first is not always the best way to go.  Within 4-5 years, your position may be different and as the home would have gained equity, there is a better likelihood of getting a larger home easier, and quite possibly in a totally different location as jobs do change.

Stay Focused  With the proper agent, the process should be easy, however that doesn't negate the reality of the frustration that may creep into the wait to find the right house. Communicating with your agent just to chat and reconnect is key, after all the agent has the best insights as to what has transpired in the marketplace.  I have prepared lists of closed properties for my clients so that they can see each sale and the amount of difference between the listing price and the closing price which will give them a feeling for where they might have to be one the right property hits the market.

If you would like information on homes for sale in Central CT, please call me at 203-206-0754 or send me an email. I would be happy to assist you or to discuss homes on the market in Central  CT 

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How Do I Win This Bid?  Buyer's Frustration in a Seller's Market

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Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott 

 

Ed Silva  Mapleridge Realty, LLC,   203-206-0754

Comments (33)

Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Thank you Richard I'm not so sure it will get a lot of attention

Apr 06, 2021 08:29 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Brian, buyers are seldom of the mindset to actually interview an agent so much as just ask them to show them a house they want to buy. 

Apr 06, 2021 08:31 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Roy, if only a prospective buyer would take the time to ask the right questions

Apr 06, 2021 08:32 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Nina, it is a very competitive market and buyers need a lot of help and it's there if they know how to look for it.

Apr 06, 2021 09:17 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Joan, the smart buyer will listen to their agent and if writing a bad offer gets their attention then they need to change their mindset and also maybe their agent

Apr 06, 2021 09:19 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

George, and I have a couple of buyers that are getting the message slowly

Apr 06, 2021 09:19 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Grant, we try to get the message out and hopefully it will help someone

Apr 06, 2021 09:20 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Debe, the nuggets are nothing that we don't have in our minds when we talk to our clients, and try to get them to hear even though they might be listening.

Apr 06, 2021 09:24 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Scott, the list of sales gets the low ball thoughts out of a buyer's head quickly.

Apr 06, 2021 09:25 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Sham, thank you for taking the time to stop.

Apr 06, 2021 09:26 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Mark, the right counsel, as well as a pre-approval and no contingencies is a start at getting a contract accepted

Apr 06, 2021 09:28 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Thanks Patricia,  the market is a challenge for all buyers, and their agents and having some experience helps a lot.

Apr 06, 2021 09:29 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Ed:

These are all great suggestions that can contribute to success in this crazy housing market where most buyers have to confront limited inventory, plenty of competition (10+ offers are not uncommon) and offering well over asking price. And you can't dawdle about getting into see homes and making the best offer you can.

Jeff

Apr 06, 2021 04:25 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I keep hearing horror stories about people bidding up properties and do they really win in the end? Most of my clients don't have the capital to pay $100k over the listing price Ed...

Apr 07, 2021 08:55 PM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Jeff, getting into homes is also an issue for many as agents seem to pick who to let in and then the multiple offers scenario

Apr 08, 2021 04:33 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Paul, it will be an issue down the road if one of these overpriced buyers needs to sell a home and if the market adjusts they will be looking at bringing money to the closing table just to sell.

Apr 08, 2021 04:35 AM
Gloria Todor
Berkshire Hathaway Home Services - Newtown Square, PA
& Doug Durren (484) 431-3686 in SE PA

Good pointers Ed.  The re-evalution point is a big one.  Many of our buyers who need to use a mortgage to purchase just cannot compete with cash deals.  Understanding that they need to re-think the steps to attaining their dreams is very important.

Apr 08, 2021 08:02 AM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I had an offer on a listing last weekend where the buyer waived any repair under $3000!  I regularly hear about offers submitted waiving inspections and sometimes appraisals.  Not recommended!

 

Apr 08, 2021 02:09 PM
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Seems unimaginable that agents don't create a comprehensive homeowner's purchase plan, especially for first time buyers. Buying in a desirable location or near a desirable location is an important factor to move out and move up to the next property by using projected equity in the process. Create a plan to use the plan to achieve buyer's goals. 

Apr 13, 2021 10:46 AM
Shannon Jones
The Shannon Jones Team - Long Beach, CA
Long Beach CA Real Estate

This is all so true! It's such a frustrating market for buyers right now but getting your offer accepted is possible right now if you follow these steps.

Apr 14, 2021 03:21 PM

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