It comes as no newsflash that the housing market has been incredibly strong, particularly as the Pandemic turned a corner and pent up demand began to be released. Buyers have been lured to the housing market by low interest rates, strong equity market returns, and often times, a desire for a new or larger space thanks to new requirements for what home means from a work and personal perspective.
As activity picked up, so, too, has competition. Buyers are having to submit very competitive, informed offers if they want to win their dream property. Because of the increase activity and competition, Pandemic pricing has come to an end in Manhattan as prices reached record highs last year. In fact, 2022 has been the busiest start to any year since 2006 for the Manhattan Luxury Market.
With stiff competition in the market, one of the questions that is most top of mind as a Buyer is – how do I remain competitive and get my offer accepted?
Working with a Buyer’s Broker is key to setting yourself up for success as a Buyer in any market, however, it is becoming evermore crucial to work with a Buyer’s Agent in the competitive market environment we are currently experiencing. In today’s market, you do not want to be the Buyer walking into an Open House without a Broker
Why You Need to Work with a Buyer’s Agent in a Competitive Market
In the era of easy access to information, there has been an uptick in individuals that attempt to take on the home buying process solo, without working with an experienced agent. We have always preached Agent not algorithm, however, the competitive market is bringing to light just how important that mindset is.
A real estate agent provides immense personal value that an algorithm cannot
One group of Buyers in particular is losing out on landing their dream properties, Millennials. This younger generation that is typically technologically savvy feels they have access to sufficient information to manage the buying process themselves. Additionally, this group typically tends to be financing their purchase as opposed to being all cash Buyers.
Buyers that attempt to take on the process themselves are quickly realizing there is much more to getting your offer accepted than simply searching Zillow or Streeteasy in your desired price range and attending an open house.
A Buyer’s Agent helps You Get Your Offer Accepted:
Relationships: Your Broker will bring years of experience to the transaction, and through that experience is deep industry relationships. In real estate, relationships are key, and something an algorithm cannot provide. In a competitive market, your Broker can help get your offer accepted over the competition by leveraging relationships they may have with the listing agent. This can be critical when trying to beat all-cash offers which have become more common.
Access: Many make the mistake of thinking that their self-service searches on Streeteasy and Zillow provide the full picture of inventory that is available. This is not the case as not all listings are on the market. Your Broker has access to off-market inventory and listings that are not consumer searchable.
Negotiating Expertise: Your Broker understands the current market and knows what it takes to get your offer accepted and get the deal done. Their negotiating experience helps you prepare and put forward a strong offer from the start, so you can remain competitive if the property is experience Multiples.
A Buyer’s Agent with take a consultative approach to understanding your unique needs in finding a home
Remember: Working with a Buyer’s Broker does not cost you any money! There is only upside. The Commission is paid for by the Seller, so not out of pocket commission expense is paid for by the Buyer to have representation. Of course, once you decide you embark on the home buying journey, it is important to ensure you are working with the right agent.