How to Avoid a Bidding War When Buying a Home
Sunny: Sunny Tracy, I'm glad to be back in. And today we're going to be talking about how to avoid getting into a bidding war with buying a home or if not, how to win a bidding war. As always, be sure to like this video if you're watching on Facebook and if you found it helpful. Comment agent below and subscribe to future broadcast. And if you're watching on youtube, like and subscribe to our channel. And as always, if you have topics or questions, make sure to put them in the comments. Today I'm joined by Matt Edwards at Spyglass Realty and I'm happy to have you here. Oh man, you got strategies for how to best avoid financial conflicts and bidding wars when you're trying to purchase a home in this hot market. It does happen a lot. The onset can making, can make your purchase and your contract easier. So we're going to be going over how to make a compelling first offer, for homes that have been on the market for awhile. We're going to talk about off market listings and how the right agent can make the world of difference.
Matt: Well, this video couldn't be at a better time because Springfield was in the air and then we can already see it out there with open houses offers coming in quicker. So bidding wars are definitely starting now. I'm going to run the next, you know, 90 to 120 days. So if you can avoid them, great, but most likely not going to happen. So let's jump into it. So number one, first question, sorry moment there. I was going to, so, all right, so what's something that a the people's agent can do as far as awkward get listings How can that benefit a potential buyer and avoiding bidding wars and multiple offer situations.
Sunny: Yeah, I mean this is really kind of the first step. Having the right agent is you've got, you know, there's so many resources out there available to us as agents far beyond the MLS. One of the biggest being an agents network and personal, you know, their personal network with other agents. If you are working with an experienced agent that's done a lot of transactions, you're likely to, or an agent that's within a firm that's like Spyglass that's done lots of big transactions in help, lots of buyers. We know a lot of agents in this market especially in certain areas of town. So we're gonna oftentimes, know about some of these listings beforehand just because we've had people reach out to us and say, Hey, I've got this listing coming in this area and I know that you work over here a lot or I know that you've got a lot of agents in this area or we know that you guys do a lot of business, so we're reaching out to you first. There's often several luxury networks in town that are, I'm kind of like agent only websites. So if you're shopping in those higher end markets, off-listings, I'm off market listings are a big part of the inventory and you can't, if you're missing them, then you're really missing a lot of the inventory out there.
Matt: Yeah, there's a certain price point that a lot of those houses in the luxury that we don't even hit the MLS or they go out for 30 days before they hit the MLS. Yep. What is that price point
Sunny: It's usually a million. A lot of the sites require either, you know, 1 million or 1.5 million to be on their site within these agent networks. But there's also like a lot of agent based group agent Facebook groups where, you know, it's an all the agents in the group, there all the people in the group are only agents and they share about coming soon listings and you have to be kind of sometimes invited and I'm accepted into those groups as well. So you want to make sure you've got an agent that's working all those, all those angles.
Matt: All those angles and to touch on like Facebook. So it's by guys we use workplace and I know I'm done. I picked up two homes that didn't even hit the market that were close to within our interoffice communication. Coming soon. Listing page. I usually, you know, cause it's not professional photo ready pitchers this as they guys check this out, it's coming. I, you know, saw him, checked him out and I was like, Hey, here's an offer. Let's get it done. You know, I was able to avoid that Hong going to the market, you know, by having that early access. So that's just something that we've utilized here and it works.
Sunny: Absolutely. One more thing is over is to have an agent that searches for homes that have been on the market for a little while and maybe they were initially overpriced and so they've now accumulated some days on market and there's sometimes opportunity there.
Matt: What would you suggest that somebody asked their agent to do like, Hey, can you send me up on a weekly email now It gives me all the listings that are over 90 days or 120 days. That way when there's big take up, they can see them like, oh, they just said 90 days.
Sunny: Yup. Check out. Yeah. Maybe expand your price point. You know, if you're only looking up to 300 but you search up to 350, and find those listings that habit moved. You know, there might be some, some price negotiation that can be done within that 350 to 300 range. They can get you closer to your price range.
Matt: Yeah, absolutely. Cause that's one of the key reasons why homestead on the market is priced or on a busy street or something like that. But that's a great idea. So absolutely. The price points at 300 and they're getting all the fresh list. He's a 300 expand that to do you know, listings that are older than 90 days and go you know, 250,000 yes. Is most likely there's some room to negotiate that down and you may get lucky and find a great deal. They may be ready to negotiate and get rid of it because you never know what kind of situation the seller. Is there anything that you'd be paying two mortgage payments and say, you know what, bring me something, let's go.
Sunny: and maybe hit a high seller, start in one situation and eventually end up in another. So just because they started, you know, and you maybe saw that home and they weren't negotiable on their price 45 days from now they could be. So that's anything at the time. Time has the effect of lowering prices. Absolutely. I'm your agent look at expired and withdrawn listings. I had an expired listing last year in Cedar Park and we chose to let it expire and rent it actually and bring it back on the market this year. So I had a couple of people call me on it after it was expired, just saying, hey, we're now looking at, I said, oh, we already got a tenant in there, but it's going to be back up on the market next year. So, that's something that is sometimes an option do. And you know, sometimes people will, they'll sell it in different situations. So looking at some of these expired and withdrawn listings, you can call us. You know, what I like to do is call some of those agents up sometimes and say, hey, is your seller still interested I know that it's not in the market, but you know, do you still have it Are you still working with this seller and would they be interested in showing the property again or would they be interested in entertaining an offer?
Matt: Now, how far back would you suggest people look and expired listings?
Sunny: Sometimes a year, depending on the, the market, but depending on how much inventory was in a certain area. But, you know, going back a year is usually enough to get you somewhere. I just, absolutely.
Matt: So you reached out to the agent that had her listening to find out what's going on, uh, to get some data. And then another trick that I've used is I also check the trend is CAD records and see if they own another house transfers or you know, maybe they just took it off the market for awhile, but they've already moved there. Five W, you know, ready and willing to sell. They're just, who knows, waiting for something or yeah, right. The old account. So you never know.
Sunny: It's important to hire an agent that's going to, you know, dig deeper. So when somebody says, no, they're not selling anymore, or no, it's not on the market, or they just look and say, oh, it expired in MLS, but I mean taking that extra time and knowing who to call and how to do it is where we go back to that first point of having the right agent to help you do this is key,
Matt: Right Yeah. Well, so we've got the three things, you know, the agent needs to have access to off market listings. Number two is search for overpriced homes by increasing your budget and expanding your days on market search and the number three, search, the expired withdrawn listings. Yeah. Those are three ways to avoid most walker situations in a bidding war.
Sunny: Absolutely. As law offers. But yes, exactly. And you know, if it can't always be avoided. So next week, tune in because we're going to talk about how to tackle those multiple offer situations.
Matt: Oh, that's fine. That's my favorite. I love those.
Sunny: Yeah, you're good at them. And if you're watching this video, don't forget, I'm on Facebook to like it. If it's been helpful, put agent in the comments. If you're watching on youtube, please like and subscribe and I'll make sure to put any topics that you want to hear about it in the comments. And also, we've got a cool new bots, so if you, if you comment below, you'll get to check out some of our new tech. But Matt, thanks for joining me today.
Matt: That makes sense. Great. So you guys next week. Absolutely. Thanks. All righty. Bye.