How To Win A Real Estate Contract In The Hottest Market On The Planet
by Brad Pauly
on Monday, April 5th, 2021 at 8:40am.
With the massive influx of people coming to Austin, the real estate market in the city is booming like never before. From studio apartments to single family homes, properties of all kinds are being bought and sold in Austin. This means competition is high, and if you’re looking to win a real estate contract you’ve got to know the right steps to take to ensure you can beat out the unprecedented competition. In this post from the Pauly Presely blog, we’ll give you some tips and tricks on winning a real estate contract in the hottest market on the planet.
Don’t Become Hyper Focused On Comps
While it’s important to know the sales data for the home you are interested in buying, you should be prepared to overpay in terms of comparable sales. The Austin real estate market is overly competitive, and it goes without saying that the sale will almost always go to the highest bidder. In most cases, whether you’re looking for a house directly in Austin or the surrounding areas, overpaying over the asking price will be necessary to secure a real estate contract. This same logic applies for any other booming real estate market in the country as well.
Minimize Contingencies As Much As Possible
For sellers, price is always the most important factor in whether or not they’ll accept a bid, with contingencies being a close second. But for buyers, eliminating financing contingencies should be a high priority. Offering cash is the best case scenario when purchasing a home in a competitive market. If that’s not possible, consider removing as many third-party financing contingencies, like loans, as possible. In competitive markets, sellers will always pick the offer with fewer stipulations and contingencies. At the very least, buyers should offer a full appraisal waiver (if applicable) if they expect to secure a real estate contract in a competitive market.
Sellers may also want to consider removing the option period all together. If you don’t feel comfortable removing the option period, keep the option days low, and the fee high — somewhere around $250 to $500 a day should suffice if there are multiple offers on the table.
Be Ready To Deal With Aggressive Terms
When inventory is limited, sellers call the shots almost entirely. In a competitive real estate market, “typical Seller’s costs” no longer apply. When purchasing a home in a market with limited inventory, the seller will expect the buyer to pay for the title policy, as well as their own home warranty. Additionally, at least 3 times the standard earnest money, and short, expensive option periods are commonplace and expected. When purchasing a home in a hot real estate market like Austin, expect to play by the sellers rules every time.
Stay In Close Communication With The Listing Agent
As a real estate agent, you have to ensure you’re staying in close contact with the listing agent in order to secure a real estate contract. You’ll want to stay on top and in the know of critical information, like the amount of offers you’re competing with, and time frame for any and all deadlines. Extracting as much information as possible from the listing agent is key to ensuring that you have all of the important details in order to help your clients win.
Write A Letter To The Seller
While it may seem old fashioned, writing a letter to the sellers letting them know how interested you are in their home can be effective. If all of the other details of the sale are in order, a nice, personalized letter could give you the extra push you need for the buyer to agree. Include a few details about yourself, and your family makes the letter that much more personalized and memorable. Another effective method to deploy when writing a letter to the seller is to mention specific aspects of the home that you loved. Can you imagine yourself hosting a traditional holiday dinner in the dining room, or a poolside grill and chill? Make sure to mention this in the letter - that tug on the sellers heart strings could be just what you need to secure the real estate contract for the Austin property you’ve been eyeing.
Need Help Winning A Real Estate Contract In The Austin, TX Area? Reach Out To Pauly Presley Realty
Pauly Presley Realty has been a leading realty group in Austin since 2005. For over 15 years, we’ve been involved in the sales and purchases of residential and mixed-use projects in Austin and the surrounding areas. For help securing a real estate contract in Austin, give us a call or contact us online.