With bidding wars and all-cash offers now commonplace in the Austin real estate scene, how do you complete? Austin Monthly asked two local realtors, including Turner Residential’s own Brandi Wyman, to reveal their insider tips for scoring your dream house in this fast-moving market. Here’s what they had to say:
Do your research (and be realistic)
Let’s say you want a four-bedroom house for $400,000 or less in South Austin. Great! What about schools and length of commute? And are you willing to do renovations? “People should write down their deal makers and deal breakers,” says Salma Manzur, a broker associate at Realty Austin. “The only things you can’t change about a house are the lot size and location—and you can’t easily make a one-story house two. But ask yourself what are you willing to spend the time and money on to change.”
Make time to house hunt
Congratulations—you have a new part-time job! It’s called house hunting. Once you are ready to start looking, be prepared to do it every weekend and even some nights after work. “Hit the ground running when you’re ready,” says Manzur. “Serious buyers are on it, so if you see a house you love that just went on the market on Saturday, expect it to be in a bidding war by Sunday.”
Hire a realtor
“This market is as wild as I’ve ever seen it, so you need an advocate more than ever,” says Brandi Wyman of Turner Residential, who has been a realtor in Austin for 10 years. “It’s almost impossible to try to house hunt on your own-—unless you have all the free time in the world.” Look for a realtor who specifically works in the areas of town you are interested in, who has good relationships in the real estate community and speaks openly and honestly with you. “If you’re looking for a unicorn, your agent should tell you,” says Manzur.
Bid fast—and big
If you walk into a house and it has everything you want, don’t question it—put in an offer. “And be prepared to offer over list price,” says Wyman. Yes, it’s scary, but you’ll still have a few days of back-and-forth with the seller’s realtor and then an option period to get the inspection and appraisal.
Bank on it
The more prepared you are financially, the faster you can act when you find “the one.” “Have your W2s ready, your paycheck stubs ready and a relationship with a local lender that has given you a pre-approval letter,” says Wyman. Both Wyman and Manzur also advise having as much as $10,000 cash in your back pocket, in case you need to make up the difference on a house that appraises under your offer.
Don’t get emotional
It’s easier said than done, but try not to get too sad if you lose a house you thought was “it.” “Ninety-nine percent of people end up in their dream house,” says Manzur. “It just may happen three months after you lost your first dream house. I always say you love the house that you get.”
Burning Questions
Do personal letters really work?
Sometimes. “I have my clients write a very personal letter if the seller is a family,” says Manzur. “Tell them you love the nearby park and the vintage touches they kept in the house, and include a picture of your family. Letters can work in the right situation, so I always advise writing one.” Wyman agrees: “I can cite two deals recently where we got special consideration because of a letter. They seem to be particularly effective in the case that the sellers have been in the house for a long time, want their neighbors to have good neighbors, or they have two offers that are very close.”
Is there any way to beat a cash offer?
It’s very difficult. “Sellers like all-cash offers because there is less of a chance that something can go wrong,” says Wyman. “They may even go slightly lower for a cash offer than a financed offer, because there is no muss, no fuss.” So, really, the only thing you can do is offer way over asking price. And only do that if you think it’s worth it.
Article courtesy of Austin Monthly. Click here for the full article.