This little lady may be your toughest home buying competition

Who's the house buyer bidding against you? All cash, no contingencies, willing to risk it all and go big? Chances are it could be a little lady like her or her husband, if they are both still together, look out. He's got a hammer and isn't afraid to use it. She doesn't want him on a ladder but he'll go anyway.

 

Recently after a tough win, a lady like this found me yelled at me because my client won. I felt terribly, I explained my job is to beat the competition when my buyers tell me they want to win. She hired me.

 

As you stroll through open houses today, chances are good your toughest competition is one of two buyer types. Know the type, plan accordingly. Want to know how to be the only offer and skip competing? Read til the bottom.

 

First let's get to know the 3 most common types of buyers moves, then let's talk about our better moves.

 

Buyer 1 - Down sizers who have houses they paid like $100.00 for in 1970 and thought they got robbed back then. Now they are selling them for $1M + and saying it's not enough. You can laugh, it's true.

 

If you are seeing a *ranch* with an on grade garage OR a house with a *first floor master* and attached garage you better believe down sizers are calling me on the actual phone to talk about how to win it. Wood rot, worn shingles, paint, carpet, laminate none of that scares them, they raised their kids in the 60,70's and 80s. They aren't testing for radon and have the cash on hand to make repairs. Don't let that scare you, we can beat grandma if we have a plan, sorry grandma.

My buyer 1 types are a hoot, they know they are tough to beat, they strut around and tell people the truth - they are going to win the house. Every time I watch one strut in, swagger on 10, telling people it's their house I can't help but chuckle inside.

 

Buyer 2. See above but adapt for people, younger soon to be down sizers, like me who want to make the world an easier place for their kids. We had a real tough time growing up, saving for our first homes, we fought for everything we have. We want our adult kids to live easier. Don't kill me, I'm just being honest. This is a legit buyer type you need to be aware of. They have two moves, they either give their kids cash, yes it happens, then the buyers refinance after the purchase or during the purchase OR they are blending families and pooling assets.

My buyer 2 types are so much fun to work with because we see the joy the parents get from either giving them a down payment boost, co signing the loan to get them across the finish line or moving in with them so they can help with the grandkids and live out their last years together. I love it.

 

Buyer 3 - They bought their first house, started having babies, adopted animals OR worse, they put their lives on hold and now they mean business. They were searching and couldn't find anyone willing to take a home sale contingency since their equity is in their house. Well, sellers are out here and ready to negotiate so let's get to work and get your house sold for a premium and get you the right forever home.

 

Buyer 3 with a twist - They grew their incomes, they grew their assets, they can take fro 401K or equity to buy without selling and they will not miss this market. They are almost as tough as grandma. You could be them or you can beat them, in either scenario you need a plan.

 

So where did all the houses go? And why do we have more than before but not as many as way back when? See first comment for real stats and keep reading, you'll learn more about the market in this post than you will scrolling insta I promise.

 

We have more houses on the market than we have had in years, but still tiny numbers. So if you were searching over the last few years, you'll be thrilled to return and see opportunities.

When I started we had thousands for sale, now we have hundreds, still more than we had last year or year before in almost all towns.

 

What's out there? What are the 3 types of pricing structures? What do you watch for?

 

Accidentally low priced houses are out there - If you see a too good to be true low priced house don't doubt yourself, it is too good to be true. It will sell speed of light and with a ton of offers. These are identifiable by agents who are new, who are out of town, who are from teeny tiny companies that don't actually sell a lot of real estate OR they are from great agents who haven't been watching the market. It can happen, and we keep a running list of them in our phones ready to leap into action.

 

What's better for our buyers is occasionally they don't know they priced low and they take the first good offer they get. As a buyer representative my job is to get you the best house for the lowest price at the terms you want. I love these houses for you.

 

Intentionally low - Energy Priced houses, the last few we have seen sold high but not as high as they could have. Buyer's are tired of bidding wars and though they still go big, it's not as big as it was. We saw houses selling 120% of ask and didn't bat an eye lash. We lived, we learned, we can spot them 10 miles away one photo in and we can tell you the real value and then help you determine if it's worth it. Also, we will find you a less competitive option to also consider. Energy pricing is a strategy smart good agents use, you have to know if that's the scenario you are walking into otherwise you think that $800K is an $820 and it's really a $900K and you missed out on the others that were really $800 that you loved but expected a deal here.

 

Appropriately priced houses - are on market enough time for you to see it, bring a contractor, bring your family, sleep on it and write a winning offer. BUT YOU NEED A PLAN. I'm here to help you craft it and win.

 

High priced houses - Owners are getting anxious around 4 weeks in. Where are the buyers? Where are the offers they saw on the news during covid? Where are the lines around the block? These can sell below market value with perks because they came on too aggressively. We can very often negotiate them to a real price, with a plan. 

 

Where are all the houses? Artificially low mortgage interest rates are keeping people in their homes longer. Rents have skyrocketed so much that people can afford to rent them for a profit. Why would you sell an income producing property? Most won't. I see it every day.

 

Boomers with the big houses, on the cul de sacs, with the flat lots and wide open set backs between the homes that everyone wants aren't selling to new people. There isn't enough senior living being built, not enough housing they deem affordable, and when they do move they are scooping up the ranches. Ask me how to pre plan a downsizing move for your parents or yourself. We have a partner who is a senior living advocate who can help.

 

What's to come?

 

So the idea that the amount of homes for sale in New England is about to jump up drastically is a tough one to believe. I just don't see how and believe me I'm watching the signs.

 

The idea that rates will dip more than a half point anytime soon feels like a struggle to believe as well. Inflation is still too high AND those low covid rates weren't real. There's no sign in the economy that suggests we will get back there ever.

IF and it's a big IF - if we did get back there prices would go bonkers like they did the first time so the savings would wipe out the prices and make houses less affordable. This isn't the play for serious buyers. Rate dips half percent, home prices go up 5% ish, doesn't make sense. Trying to sit this season out, save more money for your down payment? Trying to out save the market? Let's talk. I can show you exactly how much you need to make it worth it.

 

You have probably heard "Date the rate, marry the house". It is not a great concept in my opinion. If rates go down enough to make refinancing sensible, phenomenal go for it. I did and I will again if the rates look good.

 

Instead use this early spring / spring season to look for well priced and well positioned houses that are on market now, when there is less competition owned by a serious home seller to get the best deals of the year.

 

And for those who ask, no I don't use AI for my stories, they come from the heart. They come from life experience, from real things I do, have done, will do. From real people I meet.

 

I love to use AI for repetitive tasks not for sharing and bearing my soul to my friends here.