Winning as a Buyer in a Tight Market

I told a story to some clients this morning and figured I’d relay it to you today, because most folks are dealing with tight real estate markets — and henceforth, buying competition.

This story occurred about 10 years ago. It was during a time that the government was offering a large tax credit and then it converted to an ~$8K government loan. So that had the effect of shoring up the lower end of the market. What I mean is that because the government incentivized the real estate buyers, it caused the lower end of the market to heat up and inflate in a matter of a few months (at least in the market that I was in at the time).

That is the backdrop for the story I will share today.

So my clients were looking for a starter home. The market was going up, and there were a lot of buyers competing for houses. So we were often a day late and a dollar short, so to speak.

Then we found out a house was coming on the market and could be shown the next day. So we were at the house at 7:30 in the morning. There was already an agent in the driveway waiting for his clients.

We went through the house. We were the first ones to go through it. I asked them whether they liked the house and if they wanted to make an offer on the house. They answered “yes” to both questions. Then I said, “How bad do you want it?” They said, “We don’t want to lose it.” So we offered substantially more than the asking price. We knew it would go over asking anyway. They were willing to pay what we offered, but I told them I didn’t think it would appraise. 

Sure enough, the appraiser and underwriter knocked the price back down to what the asking price was. But the point is, we made such a good offer, so fast, that the seller accepted it quickly. That was how we didn’t end up in a competitive multiple offer situation.

My clients got the house. And it was an excellent home for them for many years. They eventually sold it and made some great equity on it.

If you need help getting the home of your dreams, let’s chat!

Thomas