For #buyers. How to win the Spring market

For #buyers. How to win the Spring market

  • Javier &Thomas
  • 03/2/22

 

Transcript:

Hello guys how are you this Javier co-founder of the Thrive Real Estate Team at Compass and I'm here with Thomas the founder the co-founder of the Thrive Real Estate Team at Compass and we're going to talk today about the Spring market from the point of view of a buyer, how do you win the Spring market which we think it's going to be crazy, so buyers get ready for a roller coaster, how do we win the market for a buyer a couple things you want to bear in mind when you're a buyer and you're trying to win the market, a try not to be emotional important it is important because this is a very large financial decision right so that being said most apartments that are of any value are going to go into bidding wars so you have to ask yourself are you willing to lose an apartment over ten thousand dollars over twenty thousand dollars fifty thousand dollars you know depending on the price point right you know if you're talking about a five hundred thousand dollar apartment am I gonna go up a hundred thousand dollars for it probably not if I'm talking about a two million dollar apartment will I go up a hundred thousand dollars for it yeah that's absolutely um the other thing that you really need to think about when you want to win the market is being prepared um you have to be super ready to make offers this market is so quick if you're in Brooklyn if you're in very desired areas of Manhattan, units are in the market just for like 29 days or so but almost every unit that looks good that the buyer's agents are inquiring about have already offers on the table so you have to be willing to make offers quick and to go up to wherever the point your tolerance takes you you know and then going out to the point where tolerance takes you you know you have to think about there's like this notion that real estate agents want the highest price possible because they make more money but the reality of it is when you break it all down to what the the difference between a hundred thousand dollars and a price point is it really doesn't make much difference to the agent um the only way the agent makes money is if there's a transaction so when a real estate agent is advising you on the best strategy and says hey you need to come up a couple bucks listen to them they want the transaction to happen they want you to get the apartment that you want to go so it's kind of like also it's hard to interrupt you but it's important your agent at least we do this if your agent doesn't do it you should be working with us, your agent should prepare a comparative market analysis of the units that you're going to make an offer on, so you're making offers knowing what the market is doing so you can go as high or as far as your tolerance takes you knowing that you're not going outside of the norm and as a good agent they will recommend you when you're going too far because if you're going too far you're going to lose money on the property than in the long term I don't want you as my client to be losing money on the property in 10 years time I want you to be gaining equity the moment you close that contract as many times as possible unfortunately in the market today it's not always possible but if it is possible that's where we want you to be you know and skilled sales agents if they're strong agents they're going to be advising their clients to list below market and the reason they advise the list below market is because you're generating a lot more interest so when you generate a lot more interest you're going to have more buyers that are going after the unit which will create a multiple offer situation and create you know bidding war you know and get that price up to and above what it would have been at that market was if the apartment was priced high so the days of looking at an apartment of let's say 2 million just for a round number and be like oh I'll get a 10 discount on that and get it for one eight that's not gonna happen but the reality is on a well-priced apartment is it will be listed at two and it will go for two two yeah you know even like at the time of when we're recording this video right now the negotiability of a permanent Manhattan is something like around two percent I mean Brooklyn not even it might be 0.2 there's really not a lot of property going below their ask price right now which also brings me to as a buyer you want to make sure that you are not just shopping around most buyers in a regular market have seen seven to ten properties before they make offers most likely depending on what you're looking for there might not be seven to ten properties for you to see today like 100 if you're looking for a 2-2 in midtown east you might have a whole bunch but if you're looking for a 2-2 in Williamsburg anywhere under 1.2 you have five units to see speaking of which if you are looking for a two-two in mid-town I have one coming to market in a couple weeks so reach out to me the contact information is down there I didn't know that was happening so yeah so as a buyer you want to win this you want to you have to be ready to make offers you have to understand the market you have to know that if there's a unit on the market that you love another buyer is going to fall in love with it too and you're going to have to fight for it that is unfortunately really in honesty it's not where a buyer's agent likes to be but it's just a reality that's there so let's go out shopping get ready get pre approved if you don't have if you don't have being prepared of pre-approved that's part of winning this free market a strong agent won't take you out unless you are pre-approved and you have your documents in order and you're actually have done the legwork to make sure that you are qualified to go in and make that offer there was a time when you know a couple years ago maybe the agent was bored and they were like sure let's go look at 10 units because I have nothing better to do today just not the reality anymore at least not for us we're not taking people out that aren't pre-approved, we're not taking people out that haven't done their revenue statements, and we're not taking people out that don't know what they want, the rebny statement is a financial statement that we put together in our first consultation with the buyer by the way and that basically shows you what you can afford to buy a department now, talking about buyers we actually have an amazing buyer guide video that we made, there's a playlist there's probably a link somewhere around this or in our bio or somewhere where you can click and watch that video if you subscribe to our page it's definitely in the library 100 but it's really useful a lot of people have told us that it's useful it's not just we just made it and we think it's useful we have actually gotten useful feedback from it but we do enjoy it yeah we do think it's useful enjoy it and let's go out shopping let's get you your next home let's win that spring market together

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