• How you win when buying or selling in real estate market

How You Win When Buying Or Selling In Real Estate Market

Join Lisa Treu of Treu Group Real Estate and Matt Weaver as they discuss how you can be successful in selling or buying in the real estate market.

To watch the video, click here.

Lisa Treu: 

Hi, it's Lisa Treu with Treu Group Real Estate. I'm here with Matt Weaver, and we are going to help you come up with a strategy to win the real estate market. You know, Matt, one of the things I'm getting asked all the time right now by everybody is, "How is the real estate market going? What is happening, what it's doing?" And I'm actually getting this question surprisingly from agents.

Matt Weaver: 

No kidding.

Lisa Treu: 

No kidding.

Matt Weaver:

 You know, it's a popular topic. I mean, look, whether you're scrolling through Facebook, whether you're watching CNBC, whatever it is, I mean, the talk is the housing market. Where it's going, where are we now, and what's going to happen? It's a popular topic.

Lisa Treu:

Yeah, I know, I had a conversation with a great agent yesterday, and this agent said to me, "The market has shifted." Now, I believe in coming from curiosity, instead of just saying yes, no, maybe not, whatever, and I said, "Tell me why have you come to that conclusion." And he said, "Well, on Zillow," which I thought was really interesting, "On Zillow I'm seeing the prices coming down and down and down, getting notifications about price reductions."

Lisa Treu:

That does not necessarily mean that a market shift has happened, even though it could. It just means that they have missed the sweet spot on that home, right?

Matt Weaver:

Absolutely.

Lisa Treu:

So when you get the formula right, and there's a really, I think simple formula, not easy formula, when you get the formula right, there still are buyers to buy your home if you're selling, and even multiple offers out there.

Matt Weaver:

Yeah, and you were talking to me a little earlier about the importance of that formula and what it can cause to the seller. I think you were sharing with me, if a home is overpriced going out the gate, meaning right when it gets on the market, and the listing gets a little stale after a period of time, what ends up happening is they end up reducing further down than what they could have originally gotten. So I found that interesting.

Lisa Treu:

You know, one of the things that happen is that if you ... It's common sense, but it's not true that people think, "If I want the most amount of money I ask a lot of money." But actually, by overpricing the listing, what you do is you cause it to not sell and become stale, right? I believe that a home is most valuable on day one, and then day two and day three. The longer it sits on the market, the less interest or maybe a kind of, "Oh, I've got to get it," from the buyer.

Lisa Treu:

And so when you overprice, the only way to fix that isn't just to go to where you should have gone, it's actually to go lower than where you should have gone. Overpricing actually doesn't make you more money, it costs you a lot of money.

Matt Weaver:

And not to mention, I mean let's face it, a lot of the market, probably 75, 80% of the marketplace is mortgage financed dependent. And I think we can both agree that typically a seller's highest price point or the best price they usually get is through a financed offer, which in turn has an appraisal. That's an interesting thing to also contend with.

Lisa Treu:

It is, and you know, sellers always say, "Well, just bring me one of those cash international buyers." First of all, cash international buyers are very savvy, so they are going to look at what has sold. But even if they fall in love with it, like you said, often the better offer is that financing deal. Now, 70%, do we really want to lose 70% of all the buyers? No, we don't.

Lisa Treu:

We want top dollar. That means that odds are we're going to have maybe a cash offer, but we're definitely going to have some finance deals in the mix to consider.

Matt Weaver:

Right, and I think how we work so well together is also deciphering the terms. Price point is so important of course for sellers, but when you're in that multiple offer situation, which I think you are still in a lot of different ways, now it also comes down to what are the terms within the contract? And I love how you really go through that detail with your sellers.

Lisa Treu:

You know, one of the things that we learned when the market shifted, and it was a very bad market for sellers during short sales, was which deal to take. Because during short sales, we'd have multiple offers and you'd have to really decipher which deal has the best chance to get to the closing table. We have taken that strategy of figuring that out and taking it and put it to our current market and our sellers. So we're able to go through all those multiple offers that we have.

Lisa Treu:

Sometimes we still are seeing three and four and five multiple offers and really looking at not just superficially at it, but we're looking at the lender, we're looking at the agent, the experience of the people on the team, we're looking at, "How bad does the buyer want this house?" Because every deal has those bumps, right? There's always something to overcome.

Matt Weaver:

It's real estate.

Lisa Treu:

It's real estate. I mean, this is what we do every day, and so having somebody who will fight for the home of their dreams [inaudible 00:05:06]. Often, if we can have that buyer, we'll give them a chance. Now, obviously price has to be right, terms have to be right, and many times, having the right lender is that tipping point, for at least us, for our decision, is it somebody who has a reputation of hitting deadlines, having the best people on the team, the best experience? Not just for the buyer but for the seller, right?

Matt Weaver:

Yeah, absolutely, and I think we can agree that what sellers can come up with in terms of a challenge when they're selling their home, and depending on the terms within that contract, when they go make an offer for the new home that they like, that seller and that agent are going to closely look at the terms they have on the sale. So it's so important to have a very short loan approval, loan commitment timeframe, it's so important to have the appraisal done in a very quick period of time, so we can remove a lot of the contingencies, so when they go make their offer they're taken very seriously.

Lisa Treu:

Yes, we actually don't have to sell one offer, we have to sell two offers, right?

Matt Weaver:

Right.

Lisa Treu:

Because we're obviously submitting an offer on the home they want to buy, but almost every agent is going to say, "That's great. It's contingent upon the sale, the closing of your property," which we want to do to protect our client, "Let me see that contract." So now we're having to really make two presentations on why you should take our offer. And so you're right, having everything perfect really gives us that competitive advantage.

Lisa Treu:

We win, and I know you do too, we win against cash all the time. They say cash is king, well yes, you know, everybody likes cash. However, if you are really experienced and know how to put the right strategy together with the right lender, you can win against cash. We do it all the time.

Matt Weaver:

Oh yeah, and we work very closely tother on that. In fact, it was just two months ago where we worked on two or three different transactions up against cash. And having those short timeframes, I believe one of the transactions was a cash offer that was on the table, a 21-day closing, and we were to arrange a similar offer or same price. However, we were able to close in 10 days.

Matt Weaver:

And being able to close quicker and give them terms sometimes is our best way. I mean, we were able to secure that transaction over competing.

Lisa Treu:

Yeah, cash doesn't scare us when we're representing a buyer, and we certainly love cash when we're representing the seller. However, we understand the right lender. Once again, I will take one of your deals all day long because you do what you say, you've got great people on your team, and it really does make it easy on me as a listing agent, and allows me to be successful with our seller, which is the most important thing.

Matt Weaver:

Yeah. And so in summary, I think it all comes down to the popular question; is it the right time to buy, and is it the right time to sell? In my opinion, I think it's both. I think it's a great time to sell and a great time to buy.

Lisa Treu:

Agreed. Yeah, you know, it's interesting because I think that when you're buying, because right now I think a lot of people are afraid to buy. And, you know, at Treu Group Real Estate, we're buying real estate. We're doing it with a strategy, we're doing it smart, and if you are planning on selling and getting top dollar is important to you, I think that it's a great time as well. And really, it comes down to, "Is it right for what's going on in your life?"

Lisa Treu:

If you want to so something different, you want a new home, you want to move to a new area, it's the time to sell, right?

Matt Weaver:

Absolutely.

Lisa Treu:

And let us help you put the strategy together, because we're helping both sellers and buyers win. There is a way to benefit. Many times we're helping somebody sell for top dollar, and then maybe move up by ... That's a great opportunity out there, move up by to maybe a less competitive ... You know, move to your dream home.

Matt Weaver:

Absolutely, and to that point, interest rates are still at an all-time low overall. So yes, have they gone up the past seven or eight months?

Lisa Treu:

Sure.

Matt Weaver:

They have, maybe 1/2 to 3/4 of a percentage point, and then in some area we might see some price decreases. That's a natural way to offset increasing interest rates, so the rule of thumb is that about eight to 10 thousand in price decrease offsets about 1/4 or 3/8 of a percentage point in terms of rate increase. So it's a natural way for the market to take place and to take shape.

Lisa Treu:

Right. You know, I think that there's always a way to position yourself to have you achieve your goals, and it starts with, for our clients. You know, what do they want? Why do they want it? How do we help them get it? And then, if you're buying, we always talk exit strategy because I think that is a peace of mind for them to know that, "If I need a plan B, I have it."

Matt Weaver:

Absolutely, and that's why we work so well together.

Lisa Treu:

 Yeah, absolutely.

Matt Weaver:

Wonderful.

Lisa Treu:

Great team.

Matt Weaver:

Absolutely. Well, thank you. Thank you for the opportunity.

Lisa Treu:

Absolutely.