It's Time to Make Unapologetic Offers

If you have been sitting on the sidelines of the Greater Indianapolis real estate market, waiting for the frenzied bidding wars to finally end, there's good news for you. The real estate landscape is shifting. While it may not be a buyer’s market across the board,  there are distinct pockets in Hamilton County and the broader Indy metro area where leverage has notably flipped back into the hands of the buyer.

As we approach the holiday and winter seasons, a long-awaited window of opportunity is opening. Inventory in certain price brackets is lingering. And for buyers who are well-prepared and willing to be bold, this is their moment to strike.

If you are eyeing a home that has been sitting on the market for 30 days or more, throw the prior playbook out the window. Now is the time to make unapologetic offers. Here is how the market has changed, where you can find opportunities, and how to structure a heavy-hitting offer that actually gets accepted.

The Markets Where Buyers Hold the Cards

Stop paying attention to the national stats. Real estate is inherently local, and right now, the Greater Indianapolis market is a tale of two realities. (The technical term is a stratified market.) If you are looking for a unique, move-in-ready, fully updated, HGTV-esque, $350K starter home in Carmel, Fishers or Noblesville, you are still facing stiff competition. Those homes continue to fly off the market.

But step outside of that specific demographic, and the story changes completely.

We are currently seeing a distinct buyer’s market in a few key sectors:

• The "Needs TLC" Mid-Market: Homes that require cosmetic updates (think 1990s brass fixtures and original oak cabinets) are sitting idle. Today’s buyers are paying a premium for turnkey properties, leaving dated homes languishing, even in highly desirable neighborhoods like Carmel and Zionsville.

• The Overambitious Luxury Sector: Some sellers are still pricing their high-end homes based on 2023 pandemic-era peaks. The buyer pool at higher price points has shrunk, meaning luxury homes priced even slightly above market value are racking up days on the market.

• The "Second Tier" Suburbs: While the core Hamilton County corridor remains relatively tight, areas just outside the immediate frenzy are seeing rising inventory and highly motivated sellers.

The Magic of the 30-Day Mark

In real estate, time is a seller's worst enemy. During the height of the market frenzy, a home sitting for a week was considered a red flag. In today's normalized market, the psychological tipping point for sellers happens right around a month.

When a home hits that many days on the market (DOM) in the fall, worry often begins to set in for any seller. They have likely kept their house spotless for weeks, vacated for weekend showings that resulted in zero offers, and are now staring down the barrel of the impending winter holidays, which is a time when buyer foot traffic traditionally plummets. They are also calculating the potential holding costs of another month of mortgage payments, property taxes, and utility bills.

At 30 days, the seller’s mindset can shift from "I want top dollar" to "I want to be done." This is exactly where a savvy buyers step in.

How to Make an "Unapologotic" Offer

Making aggressive offers doesn't mean blindly submitting a number that is $100K below asking price just to see what happens. An outrageously low offer with no justification will usually insult the seller and result in a flat rejection.

To get an accepted offer in this market, an unapologetic offer must be strategic. Here is how we structure them for success...

1. Anchor Your Price with Hard Data. If offering 10% or more below the asking price, it works better if the buyer can prove why. Pull the most recent comparable sales (comps) in the neighborhood to show the market does not support their current price. Point out the defects of the home, the home maintentnace issues, the awkward floorplan, etc. By attaching data to a low offer, it removes the emotion and forces the seller to look at the math.

2. Ask for Concessions. Sometimes, an audacious offer isn’t about dropping the purchase price. It’s about keeping the cash in your pocket. Instead of just lowballing the price, offer closer to asking price but demand seller concessions in the way of seller credits for closing costs or loan points. Ask the seller to pay for a 2-1 mortgage rate buydown (lowering your interest rate significantly for the first two years), cover all of your closing costs, and pay for needed repairs. To the seller, the net profit is lower, but psychologically, they still get to "sell" at their target price.

3. Sweeten the Terms. If buyers are hitting sellers hard on the price, consider making the terms of the offer more appealing. This is where one flexes muscles as a prepared buyer. Offer a flexible closing date tailored to the seller's needs. Offer a higher earnest money deposit to show seriousness. Always maintain your inspection rights, but consider promising not to "nickel & dime" sellers for minor repairs under $1000 (or whatever dollar amount makes sense to you). Make the path to closing look incredibly smooth.

The Bottom Line for Indy Buyers

The real estate market rewards those who can read the room. Right now, the room is full of sellers who missed the peak of the market and are growing anxious as the leaves change color. Get your priorities straight, and pick two of the following: the perfect house, the perfect location, the perfect terms. Buyers get to pick only two, because it's impossible to get all three. You do not need to settle, and you do not need to overpay. If you have been waiting for the right time to negotiate on a home in Greater Indianapolis, that time is right now.