Fast Moving Market - How am I supposed to get the deals?

Question

I'm a busy entrepreneur and don't have a lot of time to look at properties, nor do I particularly enjoy the process of house hunting. I know what I'm looking for.

I live in DFW and it seems the most desirable property and good deals are VERY fast moving and sells in days. Where are these deals?

Everything on Zillow or other sites say "pending".

Are there house hunters out there?

I don't mind working with a realtor, but I have found a lot of them are only interested in closing and when I provide my contact information, I get hounded as if a telemarketer.

Andrew Johnson · Answer

@Ashley K. I'd take a step back and try to figure what it is that you want out of an agent (or "house hunter").  Right now we are in the fastest housing market on record and you are in one of the hottest markets.  So pure logic is going to dictate the most desirable property and good deals are going to be "pending" in days.  The number of home sales are up 9% while the number of homes for sale is down 13%.

So, given these parameters, if I'm a "house hunter" whenever I think I smell a hint of a good deal, I'm going to call you (like a telemarketer).  And, by the way, I'm going to call the other 50 Ashley K's that I know because odds are one of you will see the value is whatever "good deal" I have in front of me.  I probably won't do the same if it's a mediocre property, overpriced, etc. but for an objectively desirable property it only makes sense.

I, personally, WANT my realtor to hound me.  I want her the use that same tenaciousness when I have questions for her to get answered by the other realtor.  If you want to find a realtor that doesn't have that embedded tenacious DNA, that's fine, but don't be surprised when the hottest deals are gone before she reached out to you.

Or pivot your strategy.  Look for properties that you like, that are overpriced, and have been on the market 60+ days.  Try going after a stale listing with a price that would turn it into a "deal" for you.  It's gone stale so there's no real pressure to "hound" anyone.  If anything, time becomes your friend.  Not that I'm recommending that as the best strategy but it's at least another tact to take.

Link to the article on the housing market velocity is below...

http://www.cnbc.com/2017/04/13/2017-shaping-up-to-...

Michael P. · Answer

@Ashley K. Unfortunately in this market things are moving insanely quickly.  You should prepare yourself to make very fast decisions.  The reason you aren't getting any traction with realtors is because they are looking for just that, buyers who can move and make decisions rapidly and are ready to close.  Are you a cash buyer?  If not, Do you already have your financing in order?

What exactly are you looking for?  Are you looking for an investment property such as a flip or long term rental?  Are you looking for a personal house?

Ashley K. · Answer

Thanks. I appreciate the thorough responses!

Andrew Johnson · Answer

@Ashley K. Maybe what you have to realize is that you won't get the "best" deal.  "Won't" is too harsh but you're certainly "less likely".  It's just the reality of the market.  How many investors get frustrated when they get beat out because their offer was with a 75/25 mortgage and the property gets sold (cheaper) to an all-cash offer?

If you're looking for a "good deal" that puts you in competition with investors you'll lose (more often than not) because you can't act quick enough.  If you're looking for a "best property" then you could be in contention with the legions of SFR buyers that want a home and can therefore afford to pay an emotional premium.  Again, this doesn't apply to every property but it sounds like you're targeting properties that are in demand based on quality, price, or both.

And, by the way, there's nothing wrong coming to the conclusion that in this market, at this particular point in time, given your busy schedule, that there aren't enough deals so that some fall through the cracks and leave you in an advantageous position to buy.  There are times that the market is the market.  You could look high and low for "great cash-flow" in San Francisco but you're probably not going to find it.  And if you it will get snapped up by an all-cash investor before you can get your offer in.

My suggestion:  email 5 realtors that represented the sellers in the properties that you didn't get.  Those that are pending.  Let me know you'd 1.) like to submit a back-up offer, and 2.) that if they know of any similar properties to what they just sold you want them to schedule a showing with you for that property within 24 hours after it's listed.

And if you hate phone calls, ask them to text you.

Ashley K. · Answer

To be clear, I'm just trying to purchase ONE property. Not trying to make my living in real estate.

It looks like online searching isn't going to work to find the best property. Everything good seems to be taken quickly.

What should my approach be then? Email a few realtors?

Aaron Tjomsland · Answer

@Ashley K. get the home owner before they get to a realtor.

Find a way to get in front of the home owner who is searching to sell their home.

If you're a serious entrepreneur you'll want to develop your brand and online presence - and eventually capitalize on streams where home owners go to find a solution you can provide.

The next best thing is to partner with streams already in existence - find who key people are and see what you can do for them first.

Fast Moving Market - How am I supposed to get the deals?

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