3 Best Ways to Find a Home in a Hot Market
All right, three best ways to find a home in a hot market, so everyone’s been clamoring for this topic and it’s decidedly an issue. There’s a lot a lot of locations across the country. And we happen to be in one where there’s a hot market and it’s not every single price point all the time. But there’ll be these hot spots that pick up. And we’ve had a bunch of them recently. You had one that had just a ton of offers in a super short period of time. Right. Do you have any do you remember any of those kind of numbers?
They were thirty five thousand above.
How many offered did you get on that one property is showing. So it’s just like, outrageous.
Yeah, it was like 70 or something. It was nuts.So it’s like 70 showings again. Yeah, it was ridiculous in one weekend and then only one person can buy it. Yeah.So in that it was actually Jodi’s listing but they were, you know, she was like answering the phone as fast as she could. They were calling us and I mean it was totally crazy.
So it’s considered a hot market. And that was because there are certain things that come up and whatever that happens to be, whether it’s the hot school, whether it’s the correct floor plan, whether it’s the right price, whether it’s the directional facing, whether it has a pool, whether it’s on this like this, the proper city in the proper school, there’s a bunch of different things that come into play and all of a sudden your client could be looking for that. Yeah, right. Or you as a client are looking yourself. And what you want to find out is how do I get this home in the hot market? I know I’m going to have a problem.
1. Well, first off, how to find it.
You’re going to have to not just wait for your client to get the you know, get the search and then send it to you. We do have the ability to send out coming soon to our clients. So they have kind of a heads up that it’s coming. But what we’ve started doing here is we have, you know, show me your listing on Friday where it’s kind of evolved into also, if you have a buyer that’s looking for something specific, let us know. Because if we have something coming up, you know, it’s good to know. I also we have my two broker networks that I belong to that we can put that information out there. And if they have something coming up in two or three weeks that, you know, is not in coming soon status yet, they might let us know. So try to do things and be a little proactive. Don’t just wait for your client to get the search. You’re going to have to be actively searching for properties yourself. So that’s one thing.
Well, so that’s point number one is working with a great agent that knows and cares. That’s super important is that they actually care. And that’s kind of the big thing here is we really, really preach that. And we have that’s like just what we live on a daily basis is really caring and doing the right thing. And so it comes down to speed and it comes down to not listed properties and it comes down to putting your client first and having them do each of those things within their. So that great agent is also going to like finding those off market properties, find them before they come get get to the front of the list. But then they’re going to also help you put together a nice narrative and put together a letter and have a reason and talk and create and have a bond with the other agent. It’s so nice when you can call up the other side and be like, oh, we did a deal together. That was great. And oh, do you know, Shana? That’s one of the big things. I was kind of speaking on that the other day with Shana and I was like, do you know how often in the in a calendar year you reach out for an agent or the agent says, hey, just like tell your broker that Shana said hi or one of those different things right in it matters. Having a great agent matters in that relationship and the reputation that you or the company has done in the past. And you can always talk to the other side, be like, you know, we always close on time. The lender’s great. There’s all these things right. So we’re going to have a great network that matters.
And when the other side knows, like, hey, Shana is going to make sure it happens for us. Right. And she’d do everything she can. And you’ve done tons of deals with this in the past and you have a history. So that relationship does matter because the other side’s looking at it. And from their perspective, everything I have this word I use, it’s called a squinter bowl. So everything kind of looks the same if you like, squint your eyes. The think the offers all look the same or extremely similar and they don’t know anybody, so they’re looking at it from that perspective. So imagine a multiple offers. You have all these contracts all over the place and you’re like let’s line them up like store to buy price or to buy time to close it and buy this sort of buy that. And then you overlay it with all the data through a really, really similar. How do I pick it? You look at him, you’re like, well, all the names. I don’t know any of these names. So how am I going to pick it based on a name? That’s not a way to do it. It’s about how do I pick it back? On the other agent, right, I mean, there’s a lot of things that go into it, and that’s where the agent kind of matters. So like, oh, I’ve done deals with that person and oh, they have a really good reputation, like, oh, she’s going to be she was recently, you know, I mean, this is sort of the last at the end of the day, you can only select one offer and you want to know it’s secure.
So some of these things are just your terms. You know, there’s some different ways to to work the terms of the contract that really sets us apart from the other offers. But I can tell you from the receiving end of offers, it amazes me every single time. And I think Susan just had this, how many offers come over incomplete? And if that’s how they’re there, you know, they’re doing their business, that each thing that’s incomplete or, you know, scattered all over the place and not consistent, that’s doesn’t make you feel well on how this deal is going to go and you your ability to get to close with this particular offer, right?
Yeah, the great agent matters and they’re going to send the offer across correctly. And a nice, easy bullet point email with all the stock done correctly. And imagine on that other side, if you give them an offer that they actually can’t sign, you were going through that. And I can’t remember how long ago it was with Linda. But I we went through that exact thing, and I believe you have like twenty four offers on one property. And of that, I think you said you have like eight of them that you could actually sign and Sadak all out here and all of them were like, they didn’t have this, they didn’t have that this number was wrong. It was like filled out wrong. It wasn’t initialed on this page. It’s just amazing. Out of all of those offers, this small percentage that actually you could sign and send back and have been executed contract without being like, hey, could you, like, kind of do the contract? Right. So that that comes down to the great agent again.
So we hammered that, number one, most letter terms make them feel you want them to feel super comfortable with your offer. Make that phone call, have your lender call. There’s all these things that we can dive into on how to get your offer accepted. But you know how to find a home in a hot market. You know, we talked about being proactive.
2. Backup Offers
The other thing is, I’m a huge fan of and a lot of people aren’t point to from Shana is backup offers OK? To me, it’s a not that they’re not thinking about that. They’re the seller is so focused on this primary offer and they just accepted it. So they’re confident that it’s going to get to close is pretty high or they wouldn’t have accepted it. So this is a great way that you can ask the agent, would they be willing to look at a backup offer? We love this house. And you put together a great backup offer. You slide it in, they accept it. And, you know, a lot of times, you know, it was I don’t know the exact percentage now, but the last couple of years it’s been around the thirty percent of contracts fall through.
They fall out. So imagine if, you know, you’re trying to be in a multiple of four and you’re one of even ten. So the odds statistically of getting selected if everything’s the same is ten percent.
Well, if you go into a backup offer situation in your number two in line and they fall out at thirty three percent, that’s just without a backup off. They fall out at thirty three percent. Yeah. So that means that one out of three times you’ll move up.
So that’s a lot better than 10 percent. So we increase your odds. Now the properties when you put the backup offer in it applies pressure between the seller and the client. And what happens is it creates a little friction because all of a sudden the seller has this confidence. They’re like, whatever. No, I’m not going to fix that. No, I’m not going to do this. But the buyer on that side feels I just paid whatever for your house. I just did. I did all of this like I gave you the super premium offer. So buyer thanks. Seller should do everything for me. Seller in this situation says, hey, I’ve had all these, all these, I had all these offers. I’m not doing anything like I’m not fixing it. I’m not doing this. I’m not like whatever it is. Right. And there becomes friction and then all of a sudden it’s like I’m not doing that and then add on to it. Hey, I have this extra confidence that there’s this more like grass is greener on the other side, this other secondary offer, a backup offer that makes me feel even better now. And if you then all of a sudden it’s like, you know, we’re out and they right. It just more friction. So now it falls out at a much higher rate. And I’ve seen I think the number that I saw last was that it’s 33%.
Fallout when there’s no backup offer, when you put a backup offer behind it, that number increases dramatically and it’s almost 50 percent fallout in that scenario. What would that pressure applied?
So remember that when you’re also a listing agent, because if you have a backup offer, then you’re not starting over from scratch. So backup.
I’m a huge fan of backup offers, but you’d rather take the first one because you did it for a reason. So now when you’re doing it and you’re selecting it, make sure that you’re setting the proper expectation with the client and being like, hey, we’re not going to act like this. We’re going to do it right. We’re going to kind of forget the fact that we had all of this and understand how the other side’s going to feel and why and how we’re going to act and why. And let’s move forward, because you picked that other offer for a very specific reason. Right.
And whatever that is and things get lost, their job is not just in their option, period, because things happen. So.
So that was number two. Yeah. Number two. Great, great way. Sentence’s success with it.
3. Be sincere, you know, truly be sincere.
Don’t just fire off an offer. And, you know, sometimes we get them and it feels almost like that. They’re just sending them out. Right. They’re just sending them out and seeing what will stick. And that is not the way to do it. Be sincere. Have your clients write a letter. It makes a huge difference. And not just a letter. You know, a template. Dear Sellers, address it to the owners, do your due diligence, know who they are and what their names are and addresses specifically to them and let them know truly. Why do you want why does your client want this home? What do they love about the home?
Right. I can see our family using the home in this way. And our youngest son, Trevor would totally love and appreciate doing this. And this is how we would use it in the winter and in the summer. We would really love the outdoor kitchen space and whatever that is, to hang out with our friends and insert names. Right. Like, you can see all these things and you’re creating a bond and they’re like, oh, I have a friend named. And it’s just the weirdest things that make that connection and whatever.
They actually love that house. And it’s, you know, people are emotional. And when they hear something like that, it it not only flatters them, but you feel good that somebody’s coming in and they’re going to appreciate and love your home as much as you did.
So the letter goes a long way, but then the sincerity of like, we truly want this and why. Right. And when we can close and what you’re willing to do and not overstate, but just be truthful. The other side wants to close that’s put their home on the market. They have something else they want to do next, whatever that is right. They’re moving to another home and it’s probably contingent. Yeah, right. And so what they’re looking for is they want somebody that they can trust on the other side. So just be truly sincere with what you’re trying to do. Yeah. And know the most likely line up.
Ok, call the other agent and say, hey, here’s a little bit about my clients. I’m sure you’re going to have a lot of offers. Do something that’s that sets you apart, you know, make that phone call and be sincere. Have your lender call. This is huge. If you also you know, I have a template that I’ll send out that includes Stacy and the lender and kind of everybody and let them know there are real estate family, super excited to work with them and just introduce them to one another. And so they feel good about my whole team. And then, you know, you include the lender and the lender will respond to say, hey, if you have any questions, these guys are super solid, they’re ready to go. And then all of a sudden they feel, oh, these guys are or seem like they’re going to be nice to work with. They’ve got all their ducks in a row. It seems super, you know, solid, not risky. All right. So we’ve been talking about this topic for just a little bit too long, but we added, I do know we have a problem. We actually really like landscapes, but we think we added quite a bit of value for you. And we hope that you as an agent are able to use this or use a client, kind of can find the right things to look for and identify for sure.