5 Genius Tactics Real Estate Agents Use When They Buy Their Own Homes

5 Genius Tactics Real Estate Agents Use When They Buy Their Own Homes 956x538 blog

Summary

  1. I was first in line
  2. I took my sweet time
  3. I house-hunt in the fall and winter
  4. I delivered my offer in person
  5. I followed up with a stubborn seller until he caved

[Edited transcript]

1. I was first in line

Janice:             So, they spoke to a real estate agent out of Chicago and so a really great condo listing popped up on the MLS and he knew it wasn’t going to last, so he went to see the condo mere hours after it was listed and offered right away. He didn’t offer a full asking price because he came in with such a strong offer so quickly. The sellers felt pretty confident, accepted it and got the condo. So, the lesson learned, when your agent calls you to tell you there’s a new hot listing, stop everything, go see it.

Anthony:            It feels like this is kind of an edge for brokers or realtors because it’s their job to be on MLS all the time anyway. I mean, I think most normal people or non-brokers will not be logging onto MLS all the time or whatever the listing service is available. So, it seems to be an advantage for somebody who kind of is logged in all the time anyway.

Janice:             And you’re right about that but I remember when I was house hunting. There wasn’t much in the area that we had to get, so I personally was checking for listings and if I saw something that … You know, it said like pre-listing, I’d call my agent and say “What do you think?” And they’d say “Hold on, it’s not listed yet.” But some people are checking but you’re might, the real estate, they sit there all day and look at MLS. But definitely, if they call you and say check it out, probably should check it out depending on the market time too.

2. I took my sweet time

Janice:             So, not all agents rush to new listings. It says putting in an offer on a just listed perfectly updated home will never get you the deal says a real estate agent out of, I believe, Massachusetts saying that her focus has been on homes that are on the market more than 21 days. So, that allowed her to purchase a home for $120,000 below asking price. What do you think of that?

Anthony:            This feels like sort of a deal hunting way of going about things as opposed to snatching up … I feel like the first example was how to make sure you get your dream home and the second example is how to make sure you get your dream price, right.

Janice:             Right. Right. They seem like two different things but then … I believe we talked about this in previous podcasts. Why has the house been listed for so long and why is going for $120,000 less? So, I think that’s one to dive into a little bit but I guess [inaudible 00:03:20].

Anthony:            To me, that’s a sign that its original listing price was too high, period, and you have to wait for the seller to feel the reality of it.

Janice:             So, I guess there’s that fine line there but do you jump on it or do you take your take? Your real estate agent’s gonna know how the house is priced in the market, if it’s on point or if it’s just too high and I believe you talked about that in your book too and about legal listing pricing and the right time to talk to somebody and put in an offer.

Anthony:            Yeah. Thanks for reminding me. My book, How to Buy Your Perfect First Home covers this and other important topics for home buyers, available on Amazon.

3. I house-hunt in the fall and winter

Janice:             So, houses just look better in the summer. That’s it, because nice sunlight, fresh flowers but an agent in Brooklyn, New York says that she looks in the fall and the winter. So, she was able to nab a great deal on her own home because she made the offer during Thanksgiving weekend when the open houses were just deserted. So, we’ve talked about that. Sometimes over the holidays, you have not a lot of people going because it’s Thanksgiving weekend. They’re Black Friday shopping.

Anthony:            Hey, Janice. What’s the temperature where you’re at right now?

Janice:             Cold. It’s 32, I believe.

Anthony:            What? Okay, and so New York is colder. It’s 20 over here.

Janice:             Yeah.

Anthony:            I mean, can you imagine [shlepping 00:04:44] from open house to open house in this weather?

Janice:             I don’t even like getting out to go to the grocery store and then pull into the garage right now because it’s so cool but that’s … House hunting right now doesn’t sound like an option.

Anthony:            Yeah. I think the just pure discomfort of it sort of slows down the market or the population of buyers and that can give you edge if you’re willing to get out there. [crosstalk 00:05:05]

Janice:             Absolutely. No, I agree. If you want to bundle up and do it, more power to you. It’s impressive.

4. I delivered my offer in person

Janice:             I have a couple questions for you about this. We’ve talked before. You have talked in your book about a love letter with the offer. Like, hey this is how much I love the house, this is why we want to move there, my family’s a new family, we’re starting out just like you might’ve and we want to be that forever home, but he said that he, instead of emailing it, he went and talked to them in person. I don’t know if that is [inaudible 00:05:45] could actually do that because of course you’re going through a realtor. It’s almost like a lawyer. You have to talk to the lawyer first before you can talk to the … So, what do you think about that? I mean, it’s pretty cool. It worked for him because it was harder to do the bargaining when they were standing in front of you but what do you think?

Anthony:            It can work. I think I told you that story of my friend who went to open houses and brought his adorable son with him, the two-year old song with him and I’m pretty sure that helped close the deal for him because his kid is so cute and the seller fell in love with the idea of another growing family moving into their house, that sort of thing but it can also cut the other way and I think you’re … You seem to be a little more worried about the negotiations and the priority of it. I’m more worried about just likeability and what I mean by that is it’s a great idea if you turn out to have good chemistry and click with the seller but if for whatever reason, culturally, just personality-wise it’s not a good fit, I mean the more-

Janice:             Backfire. [crosstalk 00:06:43]

Anthony:            Yeah, exactly. It could backfire and the slightly more distanced love letter might have worked out better for you.

Janice:             Than bringing the not cute two-year old he’s having a temper tantrum, a dirty diaper. That might not be as great as your friend’s very cute lovable two-year old. So, I guess I could see it both ways.

5. I followed up with a stubborn seller until he caved

Janice:             So, this real estate agent out of Florida … Speaking of warm weather. He scored a deal on a property by spreading his net wide. Basically, the real estate agent submitted below list price offered on many houses that he was interested in. It was almost like a play to win type thing. Most sellers weren’t interested but there were a few who were kind of and what he did is he followed up with him every month. “How’s it going? I’m still interested. How’s it’s going? I’m still interested.” And then one potential buyer was still paying attention at the end and that’s how he landed the house.

Janice:             So, it was kind of like a sit and wait on a lowball offer hoping that nothing else would come in. I think that’s kind of a gamble. You’re definitely not gonna do that for your dream home, more your dream- [crosstalk 00:07:55]

Anthony:            Yeah, that feels like more of an investor strategy than a family strategy. I mean, if you need to worry about when school starts and this and that, I mean that might not work for folks like you and I, basically.

Janice:             Yeah. Like I said, that sounds to me like a gamble and it works. It probably pays off if you don’t … Like you said, school starts in the end of September … No, beginning of September. Anyway, you need to be ready for that. You can’t be moving the first day of school and there’s a lot of factors to just take into consideration when making these type of deals.

Anthony:            But if you’re younger and single or an empty nester and you have flexibility, yeah, this could be an awesome strategy to get the best possible deal.

Links

https://www.realtor.com/advice/buy/secrets-real-estate-agents-use-when-they-buy-their-own-homes/

Original post by Cathie Ericson (@CathieEricson or LinkedIn)

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