How to Navigate Bidding Wars When Buying a Home
The Savvy Synopsis
Let the bids begin! Competition can be fierce when buying a home in the Triangle. What can you do to find and buy the home for you? It might mean competing with multiple offers or it might mean moving to the exurbs.
Are bidding wars something to look out for? What are “exurbs”? It’s good to keep informed on what’s to be expected when buying a home, so on today’s episode of the Savvy Realtor podcast we’ll take a look at two topics in recent news.
Are bidding wars on a home something you need to be prepared for? A recent article encourages buyers to be prepared for bidding wars to continue. What does that look like in the homebuying process here in the Triangle?
Angie says multiple offers are quite common and aren’t exclusive to new homes on the market or homes available in the spring. Even though we’re in fall and approaching the holidays, the competition is still strong. Make sure you follow the lead of your agent to know what kind of offer to make so that you win (even consider writing a letter to the sellers). You want the best deal possible, but you also want to win the bidding war!
Have you heard the term, “exurb”? Recent reports show that new construction is moving to the exurbs. So, what areas in the Triangle would be considered in the exurbs where new homes are being built? Is it an area worth considering for your next home?
Listen to the entire episode or click the timestamps below to hear more about the latest real estate news.
0:55 - In the News: Have bidding wars ended?
3:02 - After the end of summer it felt like a brief decline in home sales, but it has since gone back up.
5:03 - In the News: Reports showing the bulk of new construction is happening in “exurbs.”
8:00 - Is more constrution moving out to the “exurbs” in the Triangle? Where are they?
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Angie Cole - Contact - Call: 919-538-6477
Note: This is an automated transcription. Please forgive the robots as they tend to make some (a lot of) mistakes...
Speaker 1: (00:02)
It's time for the savvy real tour podcast. I'm Walter Showalter alongside Angie Cole, the owner and broker in charge of a Cole Realty serving you throughout the triangle, teaching you about the ins and outs when it comes to buying or selling a home. You can find a team online by going to eight Cole realty.com. That's a C O L E [inaudible] dot com or by calling (919) 578-3128 that's (919) 578-3128 and now it's time for one of the top real tours in the triangle, Angie Cole and the savvy real tour podcast on this portion of the program. We want to talk a little bit about some headlines that I saw this past week, Angie, that I wanted to kind of throw your direction to see if you're seeing, you know, kind of that a, what I call the boots on the ground, you know, ground truth. Are we really seeing this in our area based on some of these national [inaudible]?
Speaker 1: (00:53)
I have trends and conversations. Uh, there was an article I saw that says, uh, have bidding Wars ended was the question and the answer that they determined was no, and they found that data's still shows strong support for uh, the market in the United States, the real estate market and that there was an average of three offers per sold home in the month of August. All right, so for every home that was sold, there was an average of three offers on that home. But I know that things change quickly in real estate, it's already October. Are these numbers a thing of the past already?
Speaker 2: (01:29)
Not at all. Uh, we are still running into multiple offers, whether it be on the listing side or the buy side. Actually there was a email I was copied on with one of our provisional brokers, uh, earlier this week where she was in a multiple offer situation and luckily she went out for her clients. Um, but that just goes to show you that we are still in a strong market and homes are still selling quickly. And it can be funny too. I just recently, last week or the week before, I had a home that had been on the market for, I believe it was 22 to 24 days and all of the sudden I had three offers. And so multiple offers don't always, you know happen initially right out the Gates. Sometimes a home can be on the market for a little while and then multiple offers will come in.
Speaker 2: (02:16)
So it's one of those things that as a seller you need to remember that the market has shifted just a little bit and there's also seasonality that we always see whenever we enter into those fall and winter months. So things start to slow down a little bit. So I'm not going to promise you multiple offers on your home, but it is still a thing and we are still in a very strong market. It was actually neat. My photographer share with me that and he only of course photographs listings for us, but he said that we did the exact same amount of listings in Q two, so quarter two as we did in quarter three and Q three we were only off by one listing. So that goes to show you that we're still a very strong market.
Speaker 1: (03:00)
Pretty a pretty stable, which is great. I feel like we had this couple of weeks where it looked like we might have a a downturn and a really good slow down, but that kind of ended up just being a hiccup maybe.
Speaker 2: (03:10)
Well we did right after, um, I would say a summer break we saw kind of a dead period where we all freaked out for a moment. But then things really did just pick right back up. I know in our team alone in October, we have already on the books, we have over 30 closings for this month and November is shaping up to be another amazing month. So you know, it is still a very strong market. So if you're on the flip side, if you're on the buyer side and you are actively looking for a home, you know, really take the guidance of your buyer specialist and make sure that you are following their lead when it comes to making an offer on a home that you love. You know, don't drag your feet, make sure that you are strong in, you're aggressive with your offer. And once again, the take the advice of your agent to know what type of offer to present to make sure that you win, especially if you're in a multiple offer situation
Speaker 1: (04:01)
again. And if you're looking to buy a home in the area a, it might be a great idea for you to get Angie Kohl's home buying guide. This is a guide that Angie's put together for you that kind of walks you through the steps of the buying process. It's great for first time home buyers or even if you've bought a home before, but it's been a couple of years and you need a refresher on the process. It's a great little guide to have as you start that process. So, uh, be reminded of the steps, some of the important terminology that comes along with buying a home. If you want to get access to that free guide, all you have to do is text the word contract to the number five five five eight eight, eight. And if you're on your smartphone, you can download the guide right there from your phone.
Speaker 1: (04:42)
All you have to do again is text the word contract to the number five five five eight eight eight and a we'll text you right back with a link to download the guide. Just text the word contract to the number five five five eight eight eight. And you can see Angie, Kohl's home buying guide. So that was one article that I saw that was kind of more of a, you know, recent news kind of thing. Uh, I saw another article, and it's not so much about the article, but it is, uh, the word that was in the article that I'd never seen before. G and maybe a, you'll laugh at this, maybe you've heard this before, but certainly it was new across my radar. So, uh, this article was talking about how reports are showing that the bulk of new construction is happening in, and here's the vocabulary wordX , IRBs X are ribs around the country due to lower building costs and more space. What in the world is an excerpt is the first thing that came to my mind. We've heard of the suburbs, but what's an expert? And there's a bad, I have no idea. Okay. So it's, it's one of these, one of these terms that not even the agents have really,
Speaker 2: (05:46)
I know, I know.
Speaker 1: (05:47)
Just made up, you know,
Speaker 2: (05:48)
I w I was like, let me go ahead and just Google this really fast. Um, and I w it's what I assumed it would be, but honestly, I've never heard this word either. You know, when I Google this EQ Serb is a district outside of a city, especially a prosperous area beyond the suburbs. So that's interesting. I actually thought it was going to be in between kind of the city and the suburbs. They then call an X Serb. But no, it says beyond the suburbs. So the exurbs of like, for example, New York city. So, um, you know, what does that mean?
Speaker 1: (06:20)
So I think of X, XO, I think of like exoplanet, you know, the outer and outer planet, right? Like way, way on the outskirts or something like that. So I guess that's the excerpt. So what would be, you know, the X Serbs of Raleigh, would that be like other small towns? Like would that be your night? Dale's and your, you know, your, I dunno would garner be an exer
Speaker 2: (06:42)
maybe. So because we look at more of like maybe the suburb areas is more well known areas, maybe like a wake forest or so. So yeah, maybe those, you know, even smaller areas where you can, um, you know, get more land, more space. And I think those are starting to, you know, explode as well.
Speaker 1: (07:00)
Yeah, I guess maybe garner would be a suburb of [inaudible].
Speaker 2: (07:02)
I know, I know. I'm trying to think of what would be considered maybe be an extra 80. Yeah. Or like Zeppelin and Youngsville, you know, so just even a little bit further out, you know, and I think that's a lot of that causes because even areas like I mentioned like weight, you know, wake forest, it's really just booming now. Right. And so it's going even further out to those EQ Serbs to start the the building and um, you know, just the growth within the area.
Speaker 1: (07:29)
Holly Springs and a few [inaudible] would maybe be an X or Raleigh I would think.
Speaker 2: (07:33)
Yeah, maybe. So I would get, I would guess like we need to do further research on this. I know someone just mix it up and I know, I think I, yeah, that, that's not a, and me as a real estate agent and professional, I feel like I feel like should I know this word, but I don't, I'm going to post this on social media and see what type of feedback I get. I have you heard of the word excerpt
Speaker 1: (07:55)
from the actual information in the article? So, not so much on the vocabulary word, but would you say that that is a truth in our area where we're seeing a lot of the new construction happening in these outdoor town areas because of lower building costs and more space availability?
Speaker 2: (08:10)
Yeah, most definitely. Um, for example, um, when to me would be another one. Right. It's just, it is, it's a little bit fu
Speaker 2: (08:10)
rther out, but it's still not super far from, you know, to get into like downtown Raleigh. Uh, but yeah, the availability, there's a lot more options out there and land to build and you know, we're seeing just a huge, massive growth here in our area, so we need to build somewhere. Right. So, yeah.
Speaker 1: (08:33)
Yup, exactly. Apparently the term first came to use in 1950 according to, according to Google, kind of right around that time it was in popular use then it has really died off in its popularity of being used since then. So yeah,
Speaker 2: (08:49)
a new new, I'm going to, I'm going to make sure that I use this word and at least five sentences this week.
Speaker 1: (08:55)
Yep, exactly. The excerpt. Yeah. Yeah. See if you'll work it into your future vocabulary. You've been listening to the savvy real tour podcast. I'm Walter store Holt alongside Angie Cole. She's the owner and broker in charge of a Realty here in the triangle. And if you have questions for Angie, we invite you to go online to a Cole realty.com listen to past podcast episodes on the website, read the blog and all the great information, including the option to find a home right there on the website. That's a Cole realty.com and you can also call Angie with your questions. (919) 578-3128