Trulia Houst…, Other/Just Looking in Houston, TX

What's the best strategy for submitting an offer in a hot market?

Asked by Trulia Houston, Houston, TX Thu Apr 11, 2013

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Roland North…, Other Pro, Houston, TX
Thu Apr 11, 2013
BEST ANSWER
What an excellent question. Of course there are many correct answers and no one answer is valid all the time for all the the different properties on the market. I for one, am a believer that there is always a good deal to be had. Rushing into a hot market can be based on emotion which is not a good tool to use when negotiating. The most important tool to be in the front of any negotiation is based on the fact that as a buyer one needs to be approved for a loan. Pre-qualification or even pre-approvals are not good enough when making an offer in a "hot market." The ability to close quick is very helpful as well as taking the property in its current condition. However, never forgo an inspection. This may lead to many unforeseen situations. Of course, large amount of cash is helpful; but never over pay just because you believe the market will keep going up.....remember.....it can also come down after you bought your desired property. Good luck !!!!

Roland J. Northland,
An Experienced Negotiator
877-258-8462
1 vote
Mark McNitt, Agent, Houston, TX
Fri Apr 12, 2013
Trulia,

I have had several buyers make offers 5-9 times and not get the home. Here is what we are doing now to get ahead of the pack!

* My clients and I use the FUSION system VS Tempo (MLS systems Realtors use). FUSION advises my clients and I when a home comes on the market within 15 minutes of going into the system. I have them set up on auto-notification and I get the notices as well!
* Take out all the "stuff" in a contract that you don't need. We are removing wording regarding appraisals, shortening the option period for inspections, removing financial addendums and more.
* Providing a bank statement in addition to the pre-approved (NOT pre-qualified) lender letter showing the buyer as liquid assets and have their finances ready to go!
* Speaking to active Realtors that list in the area to see if they are aware of any upcoming new listings. Searching for FSBOs as well.
* Being professional! Typing the contract. Reaching out to the other Realtor by email, voice mail and text. Not being pushy, but firm and active to get the listing agents attention.
* Using electronic signatures like DocuSign. Easier to get your clients signatures at 2am!! Have them take a photo of the earnest money check and email it to you.
* When reaching that listing agent, find out what will be looked at kindly on an offer. What are the sellers needing. Quick close? Maybe a lease back?
* Finally, knowing the market and not being afraid to make an offer above list. Sometimes WAY ABOVE list. If a seller is going to get multiple offers, you want to present something that will knock their socks off!

With some luck, your clients will get the home and you a quicker sale. Otherwise, homes that are sitting for more than a few weeks have issues and be prepared to accept those issues, but hopefully at a discounted price.

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
2 votes
Farishah, Both Buyer And Seller, Lahore, VA
Thu Apr 11, 2013
Always buy low. If you can't get a house for 25 to 30 percent or more below what you estimate to be its market value, keep looking....
http://racingfuture.com/
1 vote
Myra Ephross, Agent, Bellaire, TX
Thu Apr 11, 2013
Quickly with a preapproval letter included with the offer. No lowball offers, and see if you can have your agent find out from the selling agent if there is anything that would be helpful to the seller in your offer. ie: closing date, temporary lease back, does the seller prefer to make repairs or giev an allowance? etc.

If you are working with a strong Buyers agent, they should be able to guide you in making your offer as attractive as possible to the seller.

Myra Ephross ABR, ASR,ALHS,CHMS, CNE
Prudential Fine Homes International*
Prudential Anderson Properties
711 East 11th Street
Houston, TX 77008
281 650-9779 cell

*Fewer than 7% of over 73
,000 Prudential agents worldwide hold this elite designation requiring
extensive experience in the marketing and sale of luxury homes.
1 vote
Bassma Taljeh, Agent, Houston, TX
Thu Apr 11, 2013
You need to find a Certified Negotiation Expert Realtor to submit your offer.
1 vote
Jeffery Evans, Agent, Houston, TX
Tue Jul 23, 2013
Make sure your buyer has been approved for a loan is the most important strategy a buyer can have in a hot market.
0 votes
Jeffery Evans, Agent, Houston, TX
Tue Jul 23, 2013
Make sure your buyer has been approved for a loan is the most important strategy a buyer can have in a hot market.
0 votes
Krystal Vill…, Agent, Houston, TX
Thu Apr 11, 2013
In a competetive market where multiple offers can easily drive the purchase price well above list price, you have to be prepared to be very aggressive. The Buyer and their Buyer's agent need to pre plan what they feel is not only the most the Buyer is willing to spend for the property, but the offer price needs to be within reason to be sure you can meet the appraisal contingency.

Of course, if you have the ability to waive the appraisal contingency, that can certainly give your offer a higher likelihood of being accepted. Being flexible with the move in date or being open to doing a lease back will also help strengthen your offer. I suggest that Buyers be fully pre-approved and able to close very quickly rather than only be pre-qualified and have to wait around 6 weeks to close.

That strategy only applies to properties fresh on the market in highly desirable areas. Days on market, property condition, and the surrounding area activity should always be taken into consideration when placing an offer.

Truly,

Brandon Newton
Master Certified Negotiation Expert
713-890-9108
0 votes
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