ABOVE: Snapping up a less desirable property (right, but I bet you knew that), may be just the opportunity to avoid bidding wars and high prices if you’re willing to put the time and dollars into a renovation.

It’s been a seller’s market in The Catskills and Hudson Valley for several years now, with Covid pouring gasoline on an already white-hot market. So who are the the lucky ones winning those bidding wars? And how are they coming out on top? There are definite strategies, and I’ll share my Top 7 here:

1. Get In Early and Have a Strong Offer

If priced properly, the most desirable houses can have accepted offers within about a week, if not days, so this is no longer a casual exercise. If you find THE place, you need to strike quickly. This following strategy has had some success, especially if you and your agent are aggressive: If it’s clear this will be a house that sells for over the asking price, and if you have a strong (or very strong), above ask offer, jump in, show them you want to have a quick, smooth transaction, and that you’d like a response to your offer within 24 hours. Then get that sucker under contract asap. (Sellers can entertain offers right up until they sign the contract.)

Some buyers will indicate the inspection “is for informational purposes only”, which indicates they won’t renegotiate based on the results (they still have the option to walk away, however), while more savvy buyers may waive the inspection entirely. Those items often greatly enhance the offer, because they remove a certain amount of risk from the deal.

The challenge here is FOMO. Sellers who have been dreaming of multiple offers and stratospheric prices may figure if one of the first buyers to see their property wants to offer X above asking, they should continue to show and see where things go. So I have seen this aggressive approach both work and fail. But either way, getting in early is key.

2. Be Prepared

We (Country House Realty) require bank pre-qualification or proof of funds if cash buying, before we show property. That’s because things can move so quickly that in order to have the option of making an offer before the field gets crowded or another offer is accepted, you need to have your ducks in a row. Offers won’t be entertained without one of those two items, so make that’s a first step in your buying process. It can also be helpful because your mortgage banker will likely share information about taxes and other closing expenses that could aid in determining what your budget should be.

3. Cash is King

No surprises here. Cash wins the day more often than not. But why, since the seller gets the same amount at the closing table regardless? Because one of the key risks to a deal with when prices are rising is a bank appraisal coming in short of the purchase price. ( I go into a lot of detail about this in my previous post When Do You Have Enough Cash to Buy A House, and you should check that out to understand this important point.) Having 20% cash down has become the exception rather than the rule in winning bids of the most desirable properties in our area. If you love a house that will clearly have a lot of demand, no matter how high you go, it’s tough to win with 20% down. That’s the tough reality.

Do you need all cash? No. I would say the starting point is 35% depending on the popularity of the property, and the caveat is that if your agent is smart, they will present the extra amount down “to cover any appraisal shortfall”. If no buffer is required in the end, you keep the cash in your pocket and finance the 80% or whatever higher amount you’d prefer. Yet the seller will be comfortable that their deal is solid.

4. Have a Great Agent

Self-serving? Perhaps. But I had seven offers in on a listing of mine recently, and an agent who is a seasoned veteran didn’t include a key negotiation tool to her offer, which immediately relegated it to the middle of the pile. She said “well we can cross that bridge when we come to it”, which was a poor strategy, because they would never make it to the bridge without that piece.

A great agent will think out of the box and ask the right questions. For example, they might ask the listing agent what really motivates the seller? Dollar price of course, but perhaps they want a quick close or even a delayed close so they can enjoy their final autumn Upstate. Or they dread moving furniture they don’t really want anyway, and you agree to keep or get rid of whatever they want to leave. (Trust me, for some sellers that can be a huge relief and can get your foot in the door.) These present opportunities for adding “bonus points” to your offer, and a savvy agent can absolutely make the difference in your negotiating prowess.

5. Separate From the Crowd

Areas and house styles seem to drive our inquiries. Particular towns develop a buzz (I think I can say “Livingston Manor” out loud) and modern houses (often with popular black exteriors) with white interiors seem to be the flavor of the month (am I right? I know I am because I just did that to my own house). So when those come on the market (see my colleague Erik Freeland’s listing, Shady Rock — accepted offer, sorry), the response is instantaneous and you’re immediately in a multi-bid situation.

So if you don’t have the big cash, or frankly the desire to get into that kind of a bidding scene, consider adjusting your criteria. Come up for a weekend and explore the varied towns in The Catskills and Hudson Valley. You’d be surprised at how different the personalities of these wonderful country towns can be. Even the scenic landscapes can run the gamut, from rolling farmland to rugged, forested mountains, and cheery river towns. Our advice is to read the hype, and then move on and find out what areas resonate with you.

And in terms of house style, many of you want turnkey, if so, you can skip to the next tip. But if you have a tolerance for renovating, think out of the box. I purchased this majestic symphony of vinyl siding and long single roofline (pics above) at a great (pre-Covid) price, and now it’s that black house with the partially white interior. All it took was money and a year of my life. (For more before and afters, @number.2wenty on Instagram.)

6. Downsize

We’ve all heard about the tiny house movement, and I’m not suggesting buying a house you can hitch onto the back of your car is for you, but as someone who lived in a <1,000 square foot cottage for several years, you can really create something exciting in a smaller space. So if you keep being priced out of the properties you’re choosing, consider something smaller if it comes with a lower price tag and then make it fabulous!

I found the smaller space allowed me to really splurge on luxurious materials because the amount I needed for a wall or a room was less than it might have been in a bigger pad. There are really effective tricks to making small spaces feel bigger, and I’m a huge fan of author Sarah Susanka’s book Creating the Not So Big House. You may find that this “compromise” turns out to be better suited to your lifestyle than you expect.

7. Save More Cash

In our world of instant gratification, this may not be a palatable suggestion, but you could wait to purchase until you have more cash. Covid aside, I’ve seen people who think that if they don’t buy now there will never be an opportunity, and nothing could be further from the truth. True, I don’t see prices plummeting anytime soon, and we are in frothy territory, but time for saving also provides time for exploring, and finding picturesque spots with wonderful amenities that are not on the tip of everyone’s tongue, but which offer an equally magical Upstate experience.

7 Tips for Buying in a Seller's Market