A Strategy from an Award Winning TOP Realtor to Win in A Multiple Offer Situation in Holly Springs, and the Surrounding Raleigh Market.
The real estate agents at Team Anderson Realty have developed top-of-the-line offer strategies which set them apart from many other area agents. Erica Anderson is a Top Triangle Area agent, with a team that sells hundreds of homes a year, and the Broker-Owner and REALTOR of Team Anderson Realty. Below she will share some the strategies to help you win your dream home.
Choose the Right REALTOR
Just because someone is nice, or “seems good”, does NOT mean that they have the experience to win a home bidding war in the market in which we are currently. The 2021 housing market requires a skilled, experienced agent who will navigate through the offer process with his/her own personalized strategies. Agents do not usually share their strategies with everyone, so some of them have their own “special” strategy which they keep “top secret”. This means a home buyer should interview multiple agents and ask them the questions below, as well as any other items that are important:
- What is their strategy in a multiple offer situation?
- How many homes have they closed in the previous years, AND in the current year?
- What do they think sets them apart from other REALTORS?
- What are their “hours”, if any? Can you text or call them after hours? and if you do, will they likely respond?
- If they are not able to show a new listing, HOW will they ensure you get into the property?
At Team Anderson Realty, we are located in Downtown Holly Springs, and we subscribe to 5 MLS accounts; we actively serve Holly Springs, Fuquay Varina, Apex, Cary, New Hill, Morrisville, Raleigh and all surrounding Wake County, Johnston County, Harnett County and surrounding areas. Chances are, if we do not serve it, we know a TOP agent we can refer to, as our network is large.
Make Your Offer Terms Stand Out
Have your agent find out from the listing agent what the sellers’ “ideal” or perfect offer would be. What closing date would they like? Do they prefer to keep or leave any personal property? If they currently live there, do they want a seller possession after closing (also called a rent back) negotiated in the offer? Do they prefer a buyer to emphasize that they will bridge the gap with any potential low appraisal? Or will they purchase “as is”, meaning not request any repairs for the sellers to make and/or perform any inspections? Any inspections would then be as an FYI to the buyer only. Once you know what is important or desired, tailor the offer with your top REALTOR and then present an offer you think will win with those terms you are willing or able to offer.
Consider Offering Sight Unseen
If you find a home you think could be the “one”, in the subdivision of your dreams, or perhaps with all of the “wants” on your dream home list, consider a sight unseen offer if the property is in “Coming Soon” or “No Showings” status.
Offer Presentation, This is HUGE
Did you know that some agents send the offer to the listing agent without any type of e-mail of introduction or information about the offer or about their clients? Sometimes they even send a link to the agent which may be impossible for the listing agent to view, meaning it may not be able to be sent to the sellers while on the “go”. Taking the time to send the offer as a PDF, attached to the e-mail, is one of the most important tips I can give. Just sending a link, or a blank email could make the listing agent feel as if the buyer’s agent is “checked out” or on “auto pilot”, as if they know the offer is not going to win. Listing agents want a professional offer presentation; this not only helps them scan the offer highlights, but it gives them a glimpse of how it might be to work with the buyer agent and his/her competence.
- Give an introduction as a buyer’s agent, and provide some helpful information about the clients (are they pre-approved, etc.), things that might be helpful to the listing agent to showcase the buyers.
- Offer terms should be highlighted in the body of the e-mail.
- Offer should be attached as a PDF to the e-mail, including ALL addenda, as well as the pre-qualification or pre-approval letter.
Consider Sending a Pre-Approval vs Pre-Qualification letter.
As a savvy home buyer, your top local REALTOR will inform you that providing a pre-approval letter might place your offer over and above other offers vs obtaining a pre-qualification letter. A pre-approval means that you have gone through most of the underwriting process, and to a listing agent, this means that it is less likely to run into any unforeseen underwriting delays. Pre-approved buyers can usually close faster too, because the lender has most of the information needed already.
Obtain a Pre-Qual or Pre-Approval Through a Local Lender
Buyers can use whomever they want, but for the transaction, consider choosing a local lender. Many listing agents do not love the idea of online lenders because they can be hard to reach (think CA lender with three hours’ time difference), and some companies have a history of poor communication or not closing on time. Unfortunately, even the best online companies can have this persona, and many listing agents feel more comfortable with a local lender, one who might want to do a good job to potentially receive more business from both the buyer and listing agent.
Consider this as another strategy – you can present a pre-qual with one lender and lock in with another. You are not married to a lender or specific company.
A Follow-Up Text/Phone Call to the Listing Agent to CONFIRM Receipt
Sometimes offers can go into the spam folder, or the agent may not see it right away. A top Holly Springs, Apex, Cary or Fuquay Varina real estate agent will ensure the offer has been received by following up with an e-mail, text or phone call to verify that the offer has been received.
Has an agent said you cannot win an offer in this sellers’ market because you are trying to use USDA, FHA or VA financing/loan?
I feel very strongly that they are WRONG, here’s why.
FHA Home Loan: Not all FHA buyers are going FHA because they can only put 3.5% down, sometimes it is because their debt to credit ratios are too tight for a conventional product, or they have a short sale or foreclosure that has not dropped off for a conventional loan. We see many strong buyers who are buying FHA, and they even include a considerable due diligence amount, and can bridge the gap with any approval deficiency. IF you are an FHA buyer, be sure to have the agent explain to the listing agent if you have the liquidity or plan to put as much down as a conventional buyer. Consider even sharing why your buyer is choosing to go FHA, honesty and transparency can be good no matter what.
VA Home Loan: Not all VA buyers need to finance 100%, so if you are a VA buyer, and are not financing 100%, OR if you have the ability to “bridge a gap” in appraised value to contract price, have your experienced buyer specialist let the listing agent know.
USDA Home Loan: Some buyers choose to go USDA purely because they qualify, and the loan terms are right for them, I have seen many USDA buyers who “could” go conventional, or bridge an appraisal gap. If you are one of these buyers, have your agent emphasize this with the offer presentation. If you are a first time home buyer who needs 100% financing without much liquidity, that is OK, be transparent with the agent.
Know that when the right home comes along, the right seller will accept the loan terms that you, the buyer, want and/or need.
Cash is NOT King in this Raleigh, Wake County Sellers’ Market
Some buyers think that because they are cash or can close quickly, that they can edge themselves out of other buyers who are financing, but we have not been seeing that trend. Cash offers need to be just as competitive as any other offer in terms of, at least, purchase price. If paying cash, many sellers want a quick closing and a short, or removed, due diligence period. Some investors try to “protect” their due diligence money with an attorney drafted addenda, and many listing agents advise sellers not to work with them. If the cash or investor buyer has no “skin in the game”, what makes the sellers think that they will even get to closing? If you are a cash buyer, you need a top REALTOR to guide you in the market, pulling the comparable homes, and strategizing with you. Gone are the days where cash alone provides a strong inventive to sellers. When non investor and cash buyers are putting $10,000-$100,000 down in due diligence, they are showing the sellers that even if they “walk away”, the sellers will have considerable money to keep. Most sellers understand that the majority of buyers who put down a considerable amount of due diligence money will likely close.
Can New Construction Homes in Holly Springs, Fuquay Varina and Apex Have Bidding Wars too? YES.
Some builders are choosing to allow a period of time for buyers to “bid”, which is becoming frustrating for agents who fall back on new construction for buyers who are not as liquid for the resale market “bidding wars”. This means that the builder may run into issues with buyers’ unwillingness or inability to bridge the gap of a low appraisal, and only time will tell if the builders will then keep the deposit money or choose to reduce to appraised value.
Although it seems some builders are testing the waters with this format, the larger builders seem to be moving to limited presale, increasing pricing every 3+ homes or phases, or selling only spec homes where all the finishes are selected for the buyer. There are some builders who still allow the buyer to choose their lot and finishes, but make sure you tell your REALTOR what you are looking for, because not all builders are explaining online what format they are in, or moving into. Many local real estate agents stay on top of what is happening locally, and a conversation with your chosen real estate agent can save you time and money should you want to build a new construction home.
The Bottom Line
The right agent is one who can navigate you through the entire home search and home buying process. Starting with the home search, to an offer and contract, all the way to closing, the right agent can make all the difference in the world. Even though this article seems “loaded” with insight, a seasoned agent will have much more insight and experience and even strategies not shared here. Experience matters, even with new construction homes; an advocate, working in your best interest, can make the biggest difference.
Consider using Team Anderson Realty if you are looking to buy or sell a home in the Raleigh market. We have top REALTOR agents who serve Holly Springs as well as Apex, Cary, Fuquay Varina, all of Wake County, Durham County, Johnston, County, Lee County and beyond.
There is a reason why so many buyers and sellers choose to work with Team Anderson Realty; the agents are professional, competent, and experienced, and their goal is to maximize value for their clients and get them into their dream home.
If buyers are relocating to the Raleigh or surrounding areas, our specialists can help narrow down the towns which might be a good fit for them. Some buyers prefer more space, so Clayton could be right for them, others want to be right by Raleigh or Durham, even by the Rex, Duke, UNC or Wake Hospitals. There are some who want to be within a certain distance to parks or amenities, so many of our buyers will choose Cary, Apex, Fuquay Varina or Holly Springs. Some buyers will gravitate to the Chapel Hill, Wake Forest, even Knightdale communities. The possibilities are endless, and all of these cities are still so close to the beaches, mountains, RDU airport, downtown Raleigh, etc.
The team at Team Anderson Realty consists of Erica Anderson, Broker-In-Charge and Owner of the Firm as well as Team Lead, and a core group of Team Agents. There are also many independent agents within the firm who are also fantastic agents. The Team closed 240 homes in 2020 and is results driven. A 5-star experience is the goal of the team, and Erica holds her agents to the highest of standards in terms of customer satisfaction.
Call us at: 919-610-5126 or visit: www.TeamAndersonRealty.com to learn more.