10 Mistakes Buyers Make in a Seller’s Market

                  While living on Cape Cod can sometimes feel like living in your own little world that begins at the canal and ends at Race Point Beach in Provincetown, the reality is we are subject to the whims of larger regional and national real estate market forces. Combine decades of decreasing new home construction, record-low interest rates, and Covid’s impact on worker migration patterns, and you’ve got yourself a perfect storm of high demand and incredibly low home inventory. Now add second-home buyer demand, geographical constraints, skilled labor shortages, and super pricey building materials and it all adds up to one of the strongest Seller’s Markets in recorded history across Cape Cod & the Islands, New England, and the US at large. So what can you do as a Buyer entering this market to ensure you find a home that fits your needs? It’s time to focus, bring your A-game, and avoid some common mistakes that cost many buyers their dream homes.   1. Get Preapproved for a Loan. Cash is King right now, and it may seem impossible to compete for a home on Cape Cod without $500K in the bank, but the reality is that over 60% of homes that went under contract in April 2021 used financing. So there is hope! And while you may be confident that you’ll be approved for a mortgage loan based on your steady income, your low debt-to-income ratio, and your high credit score — the seller isn’t. The only way to prove to the seller that you’re a qualified buyer is to be preapproved by a lender. Preapproval is absolutely paramount. A buyer has zero advantage if they do not have the cash to purchase without a mortgage and haven’t taken the time to speak with a lender. Not getting preapproved sends a message to the seller that the buyer isn’t taking their house hunting seriously. Know The Difference Between Prequalification & Preapproval You may have heard the terms “Prequalification” and “Preapproval” thrown around, or even used interchangeably. Prequalification means that you simply told your lender your financial story. Preapproval involves submitting a mortgage application, complete with providing verifying documents. Preapproval from a reputable lender is key. Presenting this shows the seller that the buyer has already set the wheels in motion and is serious about making [the deal] a reality. In this market, you really don’t have a chance without a pre-approval in hand prior to submitting an offer. Most agents won’t even consider working with a prequalification, whether they are on the buy side or the listing side. ++So don’t wait!   2. Be Prepared and Reachable In a seller’s market, houses go in the blink of an eye. Your real estate agent may know about a home that’s perfect for you and is minutes away from being listed, which starts the timer on making an offer. If they try to contact you and you’re not available, that house could be gone before you even get to make an offer. Always be ready. Make a game plan with your agent and be sure to keep avenues of communication open, it could mean the difference between landing the home of your dreams, or missing out to a better-prepared buyer.   3. Be Realistic Searching for that home that doesn’t exist will just cause frustration and waste valuable time. What your brother bought two years ago or what your friend bought a year ago probably (or definitely) doesn’t exist in today’s market. Your agent can provide you with a quick search of sold homes in the past year and will help you find where your reality lies. Deal with the inventory that is in front of you. That is your reality. If you see 10 -15 houses in a certain price range, in a given community, this gives you a great indication of what is available.   4. Make Your Best Offer The motivation to buy what we want for as little money as possible is deeply ingrained in us as Americans. We are always looking for a sale or a discount when making purchases. So when most people see the listing price of a home, they naturally wonder what they can really get the house for. Offering lower than the asking price is a reasonable strategy in a balanced market, especially if the house is overpriced compared with other similar homes in the area (your agent will run a CMA on the property to determine its current market value), or if it’s a buyer’s market with lots of available inventory. But trying to get a deal when you’re in a seller’s market might not be the best tactic. In a seller’s market, many buyers do not step up with a strong enough offer. The reality is that we are experiencing a historic shortage of inventory, and the competition is unusually fierce. Now is the time to come in with your strongest possible opening offer.   5. Don't Over-Analyze the Purchase Price Just as impulse-buying a home is risky, over-analyzing a home purchase in a seller’s market is ill-advised as well. When you wait too long you run a high risk of losing the home you have fallen in love with. Once you’ve determined the type of home you want, the location you desire, and your price range, and finally find a home that meets your qualifications, don’t wait to make an offer. To give yourself more leverage, be prepared to move quickly by having your finances in order — get a preapproval. Know how much you can truly afford, repair any credit issues, have your down payment in hand, and delay any other major purchases. Just don’t overthink it. Trust your agent who is ethically bound to work with your best interests in mind.   6. Work with an Experienced LOCAL Agent In a seller’s market (or any market really), it benefits buyers to get all the help they can - and you’re really going to need all the help you can get in today’s market. If you have the right seasoned LOCAL agent on your side, you’ll have a better chance of getting the home you want for a price you can afford. Additionally, buyers don’t pay real estate agents directly; their fee comes from the proceeds of the sale of the home you are purchasing. When you are competing against other buyers in a fast-paced market, it is vital to be ‘offer-ready. Working with a real estate professional saves tons of time and stress, as they know the ins and outs of the process and can provide tremendous insight regarding upcoming inventory. Checking out an agent’s sales history, client reviews, and history of working in the market you’re looking in are all great ways to ensure you’re working with a local expert.   7. Be Prepared for a Bidding War If there is ever a time when a bidding war could be imminent, it’s during a seller’s market. Be sure to discuss the possibility (inevitability) of a bidding war on the properties you are interested in. While no buyer wants to be involved in such a battle for fear of possibly going over budget, unfortunately, they have become the norm here on Cape Cod in 2021. Ask your agent early on how they would approach a bidding war and set your search below your max budget to leave room in case of an over-asking bidding war.   8. Don’t Overpay It is easy to get frustrated in a seller’s market with how many times your offer has been overlooked, rejected, or even ignored. Even so, it is important that you always stay within your budget. Talk to your real estate agent about ways to ensure that you don’t overspend, and be sure to check out comparable houses so you can familiarize yourself with the typical features of a home in your price range. No reputable agent will encourage their clients to spend more money on a home than they can reasonably afford. It’s not all about purchase price either. You have to take into account the local taxes, HOA fees, the potential for flood insurance, and many other factors. It is easy to get caught up in the hysteria of a fast-paced market, but your agent will guide you through and ensure you don’t overextend your finances.   9. Learn From Your Mistakes There’s no shame in having your offer declined, though it is easy to get frustrated if your offers are declined repeatedly, one after another. In this market, unless you are a cash buyer who is comfortable with paying the difference in cash for a property that appraises under the purchase price, this is a situation you will almost certainly face. It is vital to learn from your last offer(s) so you can approach future offers more confidently and eventually move into your dream home. Buying a house is a lot like dating. You probably have to let a few keepers slip through your fingers, have a couple sleepless nights over it, and then come back with serious intent to lock up the next greatest opportunity in front of you. You will likely receive feedback with your rejected offer, and armed with that information be able to avoid future rejections and approach future opportunities with a fresh perspective.   10. Don’t Give Up Here’s the deal, y’all: It is way more challenging to find the perfect home in a seller’s market. You will absolutely experience setbacks. When you’ve heard that even your best offer has been rejected, it can be devastating. No one likes rejection! With that being said, giving up won’t help. Instead, talk with your real estate agent to figure out what went wrong and how you can improve, then implement a new plan of action and go after the next house. Keep your expectations realistic. If you are using financing and are up against cash offers, understand it isn’t you the seller is rejecting, but your offer. Why would they take unnecessary risks? Remember that the real estate market is forever changing, demand ebbs and flows, as does inventory. So in the worst-case scenario, you can always wait until your position is stronger relative to what is available in our market.               It’s all about YOU! Are you guilty of making any of these mistakes in your home search? Sometimes finding success as a buyer in a Seller’s Market is as simple as working with the right real estate agent. If you are about to embark on purchasing a home here on Cape Cod, or are looking to shift tactics in hope of finding success in this market, we are here to help. Reach out today to schedule a confidential, no-obligation consultation today!   Share your experiences finding a home on Cape Cod during this Seller’s Market in the comments below!                

Join the NWT VIP Club for Giveaways, Events, and More!

  At Nichole Willey & Team, we know that we would not be able to do what we LOVE without the support of our friends, families, and clients!               VIP Club Gives Back to Those Who Support Our Business       All of our past clients are cordially invited to take part in a very special program that we started in August 2018 called the NWT VIP CLUB.       You may be asking yourself, “Why Me,” and simply put, we have long known that our clients are the very best part of our business, and we want to do something special to let you know how much we appreciate you all. You have demonstrated that Nichole Willey & Associates are your Realtors of choice on Cape Cod & beyond, either as a past or present client, or someone who has referred to our team, and we truly appreciate you keeping us in mind for anyone you know that is looking to buy, sell, or invest in real estate.               So what is this VIP CLUB you wonder?           It is a way for us to shower you with monthly gift give-a-ways, exclusive offers, fun events, and show our appreciation for your business!   Look out for our Monthly VIP Giveaways that goes out at 9 AM on the second Wednesday of every month. Be one of the first of four VIP's to respond to the email or Facebook post and win a prize! Past giveaways range from waterfront dining gift cards to Instapots, and everything in between! There will be a limited number of items available on a first-come, first-served basis- so make sure our emails are going to your inbox! This is not a drawing, and you do not need to do anything other than respond quickly to claim your gift. Seriously- no catch. Just a seasonal and/ or local gift just to show how much we appreciate you!                   We hope that our VIP Club will grow into a community where we all support each other's lives and businesses, and stay connected for years to come. Have questions? For more information, you can text or call us at 508-737-3567.       Join VIP Facebook Group       While we are ALWAYS happy to help your friends, families, and associates buy, sell, or invest in real estate, we want to be very clear that referrals are not a pre-requisite to join the group or benefit from our monthly giveaways and seasonal events. We just want to show you how much we appreciate you!       Best wishes and warmest regards!   Thanks so much! We are so excited to continue to share this program with you!          

Spring Cleaning 101: Closet Overhaul!

  There may be snow and freezing rain coming down right now, but Spring is just around the corner! Get a jumpstart on your Spring cleaning goals today!             We know—it’s not easy to get rid of clothes, but think of it as making more space for pieces that fit you better, and feel great about donating items that can really help out those in need.       Start 2019 out on the right foot and learn how to clean out your closet to invite more style in.   Before your closet cleanout day arrives, there's a few items you should definitely get your hands on.       Donation Bags Try to avoid throwing clothes in the trash. Not only are clothing items one of the biggest source of landfill waste and greenhouse emissions in the world, there are absolutely many people on Cape who could use some new clothes for free or at a thrift store price! Donate anything that’s clean and hole/tear/stain free to a women’s shelter or non-profit secondhand store of your choice. Things that are not in good enough shape to be worn can often be cut up for household cloths or even composted, if they’re made from a natural fiber. You get the idea- maybe don't throw it immediately in the trash, there are better places for most items.   Here's a list of places to donate clothing and household goods on Cape Cod.       A Date Decide on the day you’ll be tackling this project in advance, and mark your calendar—that way, you won’t be tempted to reschedule for brunch or lounging on your couch (or if you're like me, sleeping all day.) Carve out at least half a day (be honest with yourself- maybe you'll need a full 8 hours if you are the kind of person who buys clothes instead of doing laundry). You’ll need food breaks and time to breathe. So plan accordingly.       A Friend Do you have a friend who’s also a shopping buddy? If so, try to get them to help you with this project. You’ll need someone to help you be decisive, knows your lifestyle and what you need to wear for it, and can help you stay strong when making those difficult decisions. Make sure to keep them happy with caffeine (or wine?).   Now for the hard part. You can’t do the organizing part without purging the stuff you no longer wear. When you’re rushing in the morning, or getting ready for a night out on the town, you don’t want to be rifling through pieces you’d never wear. At the end of this process, your closet will ideally only be filled with pieces that are stain-and-tear-free, fit you really well and look great with lots of other things you own.       How to decide what to keep When making these tough choices, ask yourself these questions about each piece:   How does it make me feel? (If its not "great" or something similar, you can probably let it go.) Do I love the way I look wearing it? Is it in good shape? (No holes, tears, stains.) Does it go with my overall style vibe?   You wouldn’t keep a friend around who made you feel bad. It’s OK to hold on to the occasional item for sentimental reasons, but for the most part if you're not wearing it regularly and feeling great while wearing it, you gotta ask yourself "What am I really doing here?"       How to decide what to ditch Here’s what to ask yourself before you make the final call:   If a piece doesn’t play well with the rest of your wardrobe If it has any cosmetic problems If it’s in need of repair or only exists to make you look schlubby around the house.       HOW TO ORGANIZE YOUR CLOSET   Are you ready to acheive closet nirvana? Now is the time to channel your inner interior designer, and organize your closet to perfection. (Or just, you know, arrange things so they stay neat and you can find them.)       Hanging space Divide your clothes into categories to save time when getting ready. First separate by type (layering tanks, tops by sleeve length, skirts, shorts, pants, dresses, sweaters, and coats) and then by color (light to dark). Excessive? It’s not! Put in the extra effort to save time in the long run. Invest in slim, non-slip hangers for your tops, bottoms and coats. Then, arrange everything so it faces the same direction. This not only saves space, it gives you an overview of what you have. It also gives your wardrobe a clean, color-focused look.       Shelves And Bins If you find you can’t hang everything, spend some time schooling yourself in the art of folding, and store easily foldable items like sweaters on shelving. To keep your shelves organized throughout the year, learn how to fold for optimum space-saving—it makes all the difference. If you have enough shelf space for bins, they are great for corralling smaller items like underwear, socks and scarves.       Here's a handy guide for how to fold ANYTHING.       Drawers And Folding Space Lucky enough to have built in drawers in your closet (or a dresser)? While it’s fine (even advisable) to use drawers for socks, underwear and t-shirts, with a little imagination you can use drawers for storing jewelry and other accessories. Look for actual jewelry organizing trays, or get crafty and nestle small, open-top boxes together in a drawer to hold your favorite baubles, belts and beads.       You'll eventually want to, I guess, get out the mop and broom, and clean the rest of the house this Spring. But why not do something for yourself that will make your life so much easier, neater, and even help people in need on Cape Cod? Oh, and let us know when you're done with your closet so you can come over and do ours next!          

Exterior Cleanup Tips for Selling Your Home this Spring!

  Spring on Cape Cod is an exciting time of year for residents and visitors alike. It's also the best time of year to list your home! If you're thinking of selling your home on Cape Cod this Spring, these useful tips will help you get the most money for your home.               Spring and Summer are the busiest and best times to get your home on the market for sale with the most active buyers on the lookout for a new home to call their own! It goes without saying that before the photographer comes to your property you want to rake and remove last years leaves, and clean up any of the branches that didn't survive the winter storms.       What most homeowners may overlook is that this is also the season for refreshing, reorganizing, and rethinking your home's look after many long months of shuttering the house and letting the dust pile up (inside and out). When spring has sprung, make sure you spend some of your precious weekend chore time focusing on the outside of your house, too. It is going to give that valuable first impression to potential buyers searching the internet for homes, or visiting an open house at your property.       Your porch, patio, garage, shed and yard are going to need some serious TLC this time of year as you prepare them for their seasonal debut and make sure they’re ready for the time of the year when they are going to get the most exposure to potential buyers.       If you’ve set aside a chunk of time to knock out some chores around the house, follow some of the tips on this list to help you make the most out of your cleaning time. Here are some of our best spring cleaning tips for your homes exterior.       Spray it Clean: Rent a Pressure Washer   Pressure washing uses a strong blast of water to break up and eliminate dirt, grime, salt, mildew and mold that has stuck to different surfaces, like your patio stones or the siding on your home. This is an incredibly effective way to freshen up your exterior, but having a professional power washing service come and do the work for you can be costly. If you haven't budget for a full professional power-wash overhaul this Spring, consider renting a gas or electric pressure washer from your local hardware store or rental supplier. Rental costs will vary widely depending on location and model, but you can rent from Home Depot, for example, for under $30 for a four-hour period and under $40 for a full day. Talk to your agent as they will usually have some great tips on great local vendors for these types of projects.       Bust the Dust: Don’t Forget the Outdoor Wipe-Down   We often start our indoor cleanings with a deep dust, but—despite the massive dust potential outside—many of us skip this step on the porch and patio. Make sure that you give the exterior of your home the same dust-busting treatment, by cleaning the blades of your outdoor ceiling fans and dusting off any dust-prone surfaces on the outside of your home. Whether cleaning in or out, make sure to dust before you sweep or vacuum to ensure that you fully get rid of all the particles that fall to the ground as you dust.       See Ya Later, Cobwebs: Put the Shop Vac to Work   Speaking of vacuuming…this is another chore that’s often unfairly stuck indoors. Invest in a hard-working indoor-outdoor vacuum cleaner (such as a Shop Vac) to get rid of all the accumulated cobwebs, leaves, dust and dirt on the porch or patio. You can even use certain heavy-duty vacuums for wet jobs to address any water that may have puddled in the yard or on the patio during the cold-weather months. Just make sure your vacuum is rated as a “wet-dry” vac if you intend to use it to sweep up liquids. Pick up one with an extra-long hose or lengthening attachment to help you reach high-up crevices, corners and lights.       Light and Bright: Upgrade Your Fixtures   Spring is the perfect time to upgrade your outdoor light fixtures, including your landscape lights, exterior up-lights, security lights and general lighting on the porch or covered patio. Replacing any dingy or outdated exterior lights is a cost-effective way to majorly refresh style-wise, but it’s also an excellent way to help make your home more energy-efficient and cost-effective, especially when you switch to long-lasting, energy-saving LED lights.   Polish and Scrub: Refreshing Outdoor Furniture   With anything outdoor living, storage is half the battle. If you’ve properly stored your outdoor furniture, grills, etc. then they should emerge in the spring looking clean and beautiful. But most pieces still need a good wipe-down. To refresh your outdoor patio furniture, consider the material. If it’s real wood, such as teak, you can revitalize dullness with a wood conditioner or polish. For metal, wicker or plastic furniture, use a gentle cleaner or soapy water and do a top-to-bottom wipe-down. Be sure to let your furniture dry completely (preferably in the sun, but by hand if needed) to prevent any mold or mildew from accumulating.       Instant Refresh: Cleaning Patio Cushions   With patio furniture, the cushions tend to be the first to go. They accumulate mold, mildew, rips, tears and stains faster than almost any other outdoor accessory. To get some extra mileage out of yours, wipe them down a few times throughout the season using a mix of water and mild soap. Using a soft-bristled brush will help break up any loose dirt and stains. Though they are often the first to go, patio cushions are also the easiest to update. If they’re too dirty or if you just want a simple way to give your space a big upgrade, consider replacing cushions.       Pro-Level Window-Washing: Invest in a Squeegee   Nothing makes your home feel quite as bright and new as a whole-home window-washing, indoors and out. If you plan to do it the DIY way, equip yourself with some professional-grade tools, like commercial squeegees that help you give all your doors and windows a complete upgrade. If you have a little extra room in your budget, consider paying a professional window-washer to do the job for you. You’ll be surprised to see how far this service really goes with regard to spiffing up your home!       Reorganize and Donate: Clean Out the Shed   Spring cleaning isn’t all about scrubbing, spraying and dusting. It’s also about organizing and neatening up those spaces that have become overstuffed and overflowing throughout the winter. Make sure to give your shed, garage and any other outdoor storage areas the “keep, toss or donate” treatment so you free up some space for new tools and supplies and so you have some extra space to prevent clutter.       A little bit goes a long way! Spring is the perfect season to ready your outdoor space for the best time of the year (and to get your home sold quicker and for more money)! When the porch, patio and yard feel neat, clean and welcoming, you’ll be excited to spend time in the fresh air when the warm weather rolls around. And remember, with spring cleaning, a little bit goes a long way. With just a small amount of effort, you’ll enjoy big returns!       If you're thinking of selling your home this Spring or Summer here on Cape Cod and not sure where to begin, please reach out to Nichole Willey & Associates, we would love to help get your home sold!       Nichole Willey, Realtor. Nichole Willey & Associates, Keller Williams Cape Cod & the Islands. 508-737-3567 | nicholewilley@kw.com