In a competitive real estate market having the right Realtor is critical.
In this Real Estate Hacking Live Clip veteran real estate broker Audra Diggs talks about how she uses her network to help helps her buyer clients find homes before they go on the market.
Transcript:
Jamie Bounds 00:02
Hi Audra, thanks for joining.
Audra Diggs 00:04
Hi. Thanks for having me. How’s everybody doing today?
Jamie Bounds 00:07
Good, It’s a great topic today that we’re tackling. A little bit about Audra. Audra is a real estate broker and founder of Ivy Partners. She has a strong niche in working with real estate investors, which added an additional 4 million in sales last year on top of her regular retail business. That is awesome. Thank you for joining us.
Chris Bounds 00:35
Hi Audra. You have a unique experience because you work a lot with investors but you also have some retail clients. They both have very distinct but different motivations and needs. How are you preparing your clients for and you can chop this up, however you feel are the most impactful but how are you preparing for this low inventory market?
Audra Diggs 01:04
With a lot of patience. With my investors, it’s like just pound the pavement. I think that for me, I’m getting deals with them right now is just working with other agents. My network of we’ve done a deal in the past, what do you have coming up on the market and staying in contact with them. If they have something off market they’re sending it to me, because we’ve worked with each other in the past. And with my traditional buyers, a little more challenging just because of the obvious.
We’re getting beat down with multiple offers and appraisal contingencies being waived and paying 10s of 1000s of dollars more for properties. So it’s, again, patients. I know that one of my recent clients was contacting an agent, “Hey. In the certain area, do you have anything coming up?” And yes, I do. I said, “I’ve got this buyer. They’re very qualified.” We’ve been beat out several times which I know is what all agents are confronted with right now. Just like having that established network of other realtors that I’ve worked with. That’s kind of helping my buyers in this crazy market.
Chris Bounds 02:20
Okay, so it’s being proactive and reaching out to your network to me. You’re not getting any on an unfair advantage. It’s just being prepared. I mean, you’re being prepared to move on something quickly because by the time date to day three on market. I mean, look, let’s face it. They’ve got some offers on.
Audra Diggs 02:43
Right.
Chris Bounds 02:44
Depending on how it is positioned it very well. Probably this ask or even higher.
Audra Diggs 02:51
Yeah. I don’t think it’s an unfair advantage at all. I’ve sold hundreds of homes. I’ve helped sellers, buyers, investors and traditional clients. I think it is just being proactive communicating. It doesn’t hurt that I’ve worked with several of these agents before and it’s advantageous for my clients but not unfair.
Just staying in touch with agents and asking them what’s going on. I mean, everybody kind of knows it’s hairy out there. But at the end of the day, somebody wants to sell their property and somebody wants to buy that property. Just having good connections.
Chris Bounds 03:33
Is an unfair advantage in the sense that they have you. Not all are able to do that. Right. I mean, if you’re the order taker, buyer’s agent. You’re just waiting for show me a listing and then all sudden an offer for you. I mean, one, you’re probably not representing your client very well. It’s going to be challenging for both of you. Yeah. You’re not doing that. That wouldn’t be the unfair advantage for your clients. You’re putting them in the best possible position to get what they want.
Audra Diggs 04:09
Absolutely. Yeah, I think it is just communication. You can’t just send an offer and expect your client to receive the royal treatment. Right. You do some other work behind the scenes, call up the agents, send them a text, send them an email and let them know. There’s a story associated with with your offer. Right.
Chris Bounds 04:34
This is funny. I don’t know if you watch the show Friends. There’s that scene where Ross is trying to get that apartment across from Monica. He goes and since I don’t know what it is. It was like brownies or muffins. They look through the window and it’s like which muffins. Is it that big one? Is it this or that? No, it’s the small one. It’s like he had this whole room full of gifts and other things.
Audra Diggs 05:03
I remember that. I wish that all we had to do is bring some muffins or chocolate chip cookies or something. But right now, it’s like bringing cash to the table. That magic treat.
Chris Bounds 05:16
Yeah, if it was for the for the agent and then maybe wine or whiskey.
Audra Diggs 05:20
We can do that to Eli, I think he just said bring doughnuts. I wish it was just as easy as doughnuts. We can all do donuts or cookies. We can do wine, whiskey or whatever it is. Yeah. It’s so competitive out there. I think this is my secret.
My trick is just kind of doing what I know. That’s just communicating with the other agents which has been advantageous for me working with investors. And also, we’re just normal buyers and sellers. Just communicate. Then like you said, being proactive.
Chris Bounds 05:56
On the sell side. It’s a similar problem for you, whether you’re an investor or you’re a retail client. You’re out there. You’ve got five offers on the table. Most of them over ask, “Are you doing anything on the mitigate potential appraisal issues? Do you have those conversations with both your seller and also the buyer’s agent and how to get that mitigated?
Audra Diggs 06:23
Absolutely. I have our listing right now. It was on the market for five days. We had over 125 showings and probably eight to 10 offers. What I’m been used to doing is vetting the offers. Right. I tell my sellers, the highest is not always the best offer.
Chris Bounds 06:47
Oh, no. The highest actually could be a bad offer if they can’t afford it. What does that do? In this market, waste you 20 days or 30 days. Maybe, like what Ricky said the market changes in that time period. Then depending on the sellers timeline could put them in a bad situation.
Audra Diggs 07:08
Yes. That’s happened. We were on round three. Right. Because the highest isn’t always the best offer. What do you do if your house is listed for $200,000? You’re taking an offer and executed for 250? Okay. Well, what happens when it only appraises for 220? That’s a conversation that I have with the agents.
What is your buyer going to do? You can just back out, we can’t waste time. So does your client have the cash to close. Do they to house bad enough? I’ve also taken a step further. I call the lender. Hey, so what’s the issue if this house doesn’t appraise? Whatever information you’re able to give me legally. Are they able to do this? If they say no, then it’s okay, back to the drawing board. We’re going down the list of the next offer. Just continue that way. Are you willing to waive the appraisal? What paperwork can we provide? We want to keep things moving. We don’t want to have to go and walk on the market.
We spend everybody’s time. I think just again, communication. Talking with both agents and talking with my seller. Letting them know, “Hey, we bought two offers, the difference in price is $30 to $40,000. But which one is actually going to close? Right. We’d rather have the offer. That list price that’s going to close in 30 days versus playing this game back and forth for you to maybe make a couple $1,000 more.
Chris Bounds 08:35
Yeah. Ultimately, a contract even signed and executed. I mean, what’s its real value if it doesn’t close? That’s not legal advice or anything. Ultimately, what I’m saying everyone wants to close. Right. The seller doesn’t benefit in any way if you don’t close. Eli chimed in again communication definitely key. Yeah, having that communication and clear expectations on the front end with both buyer and with seller. Having a plan and that’s going to help everyone. It’s going to help the transaction go smoother. No surprises. No stalling and last minute negotiations. Ultimately, that’s how you get a deal done.
Audra Diggs 09:22
Absolutely. And you know, everyone thinks it’s a seller’s market which it is. There’s low inventory, but also buyers are able to kind of cherry pick. That’s what I found there putting offers in 1, 2, 3, 4 or 5 houses. Then coming up with like the highest number just to win the bid and then they have time to decide.
Do we like house a or do we like house b? Again, that’s an honest conversation with the other agent like, “Hey, what is your client’s true intentions?” If we are to accept this offer, are they willing to move forward because at the end of the day, let’s not waste anybody’s time.
Chris Bounds 09:58
Correct. I’ll make this comment before we go. In doing that, it also puts the buyer. I’d say for buyers, if they get beat out an offer that is extra demand. It should go into that backup position if they really want that particular house because you never know what’s going to happen with that first contract.
Especially, throughout the option period or due diligence period being in that backup position because if that particular buyer did what you said and put in multiple offers. That’s the one that the next then you’ll at least have your buyer in next in line. I appreciate it. Looking forward to connecting with you again and have a good week. Yeah.
Audra Diggs 10:52
Thanks for having me and reach out to me. If you have any questions and I’m happy to help. It’s been fun.
Jamie Bounds 10:59
Great input. Thank you.