Black Friday Prices for Homes
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The week of September 22, 2019 is considered the Black Friday for home sales, with a deal-delivering trifecta of less competition, more price reductions and higher inventory, according to new data from Realtor.com.
According to the report, buyers will have 26 percent less competition and 6.1 percent more homes on the market from which to choose. In addition, nearly 6 percent of homes on the market will get a price reduction, averaging about 2.4 percent less than the original asking price.
You know how to prepare for holiday Black Friday deals—scour websites and flyers for the best deals, get up way before dawn and prepare to face enormous crowds—but what about your approach to the real estate Black Friday?
Buyers should do these five things now to find to score the best deal next week.
1. Scrutinize Listing Dates
Unlike Black Friday sales, buyers won’t find flyers that preview the deals to come; they’ve got to go hunting for them. Look for homes that have been for sale for a while, suggests Owen Boller, a broker with Compass in New York City.
“Typically homes that have been on the market longer than 90 days will be prime subjects for a Black Friday reduction,” he says. “Sellers may be frustrated because their home was on the market all summer with a lot of showings but no offers. Those may be the ones put on the chopping block next week.”
2. Get Your Finances In Order
“Make sure you’re squared away on the financial front when you put in offer with preapproval from a lender saying you can afford to buy the house,” says Anne Green, agent for CENTURY 21 New Millennium in Fredericksburg, Va. “That’s step one in any market.”
Boller adds that buyers need to be preapproved; not just prequalified.
3. Be Willing To Close Soon
If possible, offer an early closing date, suggests Green. “If the house has been on the market for 60 days and it’s vacant, the seller will likely want an earlier closing date,” she says. “If you are in a multiple-offer situation, offering to close sooner may appeal to the owner more.”
Always check the date with your lender first to make sure the deal has enough time to close, Green adds.
4. Know What’s a Good Deal
Ask your agent to do a competitive market analysis of homes that have recently sold in the neighborhood, says Green. This will help you know what’s a good price and what’s still too high.
Buyers should seek out reputable brokers who have expertise in specific micromarkets, suggests Cody Vichinsky, co-founder of Bespoke Real Estate in New York.
“While there’s a lot of inventory on the market, buyers should look past the initial value of a property meeting their immediate requirements and consider the potential upside of the investment,” he says. “Buyers should remember to take the time to understand the property’s specific nuances as it relates to its yield and impactful variables. These details are highly impactful to the property’s intrinsic value.”
5. Act Fast
Finally, be ready to go. Time is of the essence when real estate is priced well, says Boller.
“In the New York market, when something hits that fine line and is at the right number, it’s likely that more than one person was watching,” he says. “Be ready to make an offer as soon as possible, and be ready to address a counter offer if the seller gets more than one interested buyer.”
Expect houses to go fast this week, says Green. “Interest rate are historically low, and a lot of buyers will take it as a sign to hit the ground running,” she says. “With the expected uptick in sales, get your bid in soon and go with your strongest offer first. You don’t want to leave time for negotiations only to have a third party come in with a better offer and get the home.”