Bryn Mawr buyers in today’s Main Line housing market are feeling a little bit like Rocky in the 14th round, beat up by competing offers over asking, waiving of inspections, and all cash buyers. When will it die down?
Bryn Mawr housing market results for Q1 2021 reflect the frenzy we’ve all been feeling. Inventory is at an all-time low of 1.5 months and New Pendings (homes under contract) are 150% above the 5 year trend.
Is there a glimmer of hope?
A recent national survey conducted for Realtor.com indicates a trend for 10% more homes to be listed this year and at more affordable prices. “There is a brighter light at the end of the tunnel for many weary buyers,” says Realtor.com Senior Economist George Ratiu.
How does that apply for the Bryn Mawr housing market? Surprisingly, there’s a new listing increase of 40% in Bryn Mawr for 2021 vs. 2020.
However, Bryn Mawr buyer demand outpaces today’s supply creating the 1.5 months of inventory statistic noted above.
How to win in a competing market?
From pain can come good comedy! The illustration below literally had me rolling!
We’ve been facing on average 8-12 offers on new listings within days, sometimes hours of hitting the market on the Main Line:
At least we know we’re not alone! This is a national housing trend, not just the Bryn Mawr housing market.
How to win? There are options that can help you succeed, while retaining your due diligence protections and maintaining compliance with real estate ethics and professional guidelines. Let’s start with 5 tips to help you prepare for negotiations.
5 critical steps to create a win
- 1) Hire a Realtor – it’s important to work with a professional that you trust. The advance work preparing for an offer helps you strategize and win. Also, select an agent who will prospect new opportunities for you through networking, as well as reaching out to off-market potential sellers. Private match making with off-market sellers is one of my specialties!
- 2) Financial Strategy – have your financial buying strategy prepared. If you’re buying with cash, your agent will need proof of cash. If you’re taking advantage of today’s low interest rates, work with both your agent and lender in advance. It’s important to know what your offer ceiling is and explore scenarios that work for you, while creating an attractive offer for the seller. You should have those conversations well ahead of time, before you see the home you love.
- 3) Market Knowledge – be sure your agent is providing you with up-to-date market data. If you face an “above asking” offer situation, you’ll want to be informed and aware of trends to assess what level of risk this may imply for future values for the Bryn Mawr housing market. As you’ve heard me say before…
- 4) Do your homework – there are documents needed for an offer that should be done ahead of time, to save from the frenzy of making an offer late night on a Sunday night after the first open house. If possible, I like to go over a sample offer with my clients well ahead of negotiations so decisions can be made quickly without losing the opportunity for questions and concerns.
- 5) Know your “walk away” number – be prepared for the frenzy. Know what your walk away number is to prevent paying more than makes sense for your individual financial strategy. This is unique for every individual, but something I discuss with each client.
Recent win in Bryn Mawr
I helped my clients recently win in a competing offer dynamic for a beautiful home in Bryn Mawr. We previously lost out on 3 offers, but this time used a different, creative strategy which retained their home inspection and appraisal contingencies.
Contact me to discuss strategies that fit for your particular goals whether you’re buying in Bryn Mawr, on the Main Line, Philadelphia or New Jersey. You’re always welcome to browse at LuxLivingGroup.com.