Archive for September, 2018

My Top Two Tips for Catching a Deal in Today’s Real Estate Market

Monday, September 24th, 2018

By Adrienne Andreae

The market is good. It’s not 2005 where we saw prices rocket ship up and people fighting over houses. But we do run into the occasional bidding war, average days on the market are down, and sellers expect their homes to sell. Unfortunately, these conditions don’t allow for many steals to hit the market. They do pop up though.

I get calls from buyers all the time asking me how they can get a deal. Are there any deals left? How can we get one? I always give the same two pieces of advice.

Before I get to the advice, let’s discuss what I mean by “deal.” 

A deal is a house that is listed at the low end or slightly under current market value. You can tell a house is a good deal if you’ve been watching the market awhile. Let’s say homes that fit your criteria (i.e., time to open water, size, age, etc.) list between $550-$600k. Suddenly, something fitting your criteria hits the market for $545k. Or something larger or more updated than the homes you’ve been looking at hits the market for $565K. Those are the kind of deals we see these days. 

The view from 3830 Carupano which recently sold in 12 days.

When you see a house that is $100k under market value, there is some piece to its value you’re missing. I’m not picking on you, but I get calls like this often. I can usually break down why the same size house costs so much less in seconds. Maybe it’s seawall is small, its under the flood plain, or its an hour to open water. There are lots of reasons this could be true. The answer is almost never that the seller just doesn’t care about an extra $100k.

Ok, now that we agree on what a deal looks like, how can you get one? Here are my best two pieces of advice:

Tip #1: Be Flexible
You may want a home that is 2400-2600 sq ft., 3/3/3, within 20 minutes to open water, and was built within 5 years. You have the post popular criteria out there. It’s tough to find the perfect home at any price. When you are looking for a deal, it’s likely you will have to bend a little more than you might otherwise. Remember, price is part of your criteria. If you’re willing to renovate at least part of a home or spend a little more time tooling through the canal system, you’re much more likely to find a deal.

Tip #2: Be Ready

Seven years ago, sellers might list low to attract the few serious buyers still lurking around. Now, they do it to sell quickly. Another way to say deal is “priced to sell.” A priced to sell home does not stay on the market long. You will need to move quickly if you want a chance. Being ready means more than feeling ready to buy. It means you have done some of the not-so-fun stuff. You have talked to a bank if you’re getting a loan, whether it’s a loan on the property or a line of credit on your current home. If you’re paying cash, you’ve run the numbers and know what you’re willing to spend. Also, if you end up in a bidding war, the buyer who has a pre-approval or proof of funds ready to go may look like a safer bet for the motivated seller.

25351 Vantage recently sold in 3 days.

Another part of being ready is having a plan in place to get here quickly to see the home. I’ve seen offers come in on homes two or three days after they hit the market. Sometimes it’s luck that you’re in town and the deal hits the market. Sometimes you have to make you’re own luck and get here in a jiffy.

Why Did I Skip the Most Obvious Advice?

You might have expected me to tell you to watch the market closely. In my experience, I don’t have to tell my customers to watch the market. Click on a few real estate sites once and Google will find a way to keep you looking. I will tell you every site is not the same. If you want the most accurate updates on new homes on the market, sign up to get emails from our MLS portal. You can sign up by emailing us at info@andreaegroup.com.