Recently (Summer 2024) I got a new apartment in Seattle and a job as a software engineer. My experience obtaining these had some surprising similarities. More people want a great apartment in Seattle than there are great apartments available in Seattle. And more people want great software engineering jobs than there are great software engineering jobs available. These are hot seller markets and it can feel daunting and demoralizing to enter these as a buyer. But sometimes life puts us in these situations and there are ways to succeed even when conditions are unfavorable.
Hot seller markets are characterized by huge numbers of applications to a limited set of opportunities, overvaluing of opportunities by sellers, and negative group sentiment among buyers. If you are seeing some or all of these signs, you are in the right place because I have some tips for you.
To succeed in a hot seller market as buyers we need to create a great seller experience. We need to get inside the thought processes of the sellers. What do sellers want? They want to offload their inventory quickly at the highest value while exerting minimal effort. Let’s help them do that and they will help us in turn!
Help sellers offload inventory fast
Sellers hate sitting around with unused inventory. Unfilled jobs and unfilled apartments are negative-value assets. This is a huge pain point that buyers can take advantage of in multiple ways:
Be ready to make decisions fast
Sellers don’t want to wait around for buyers to make up their minds. They want to offload inventory! As buyers, we need to set clear criteria surrounding the buying decision so we can be assertive and decisive. We need to know if we would buy before we receive an offer even if we do not have the benefit of comparison. This clarity and purpose comes through to the seller and gives them confidence in us as applicants.
Be early to the party
When there is lots of qualified interest in an opportunity it helps to be first. This is unfortunately quite important when there can be hundreds of applications for an opportunity. If we have clear criteria for what we want, we can set up targeted alerts (using LinkedIn, craigslist, etc) which allow us to act quickly on new opportunities.
Once we realize that we are in a hot seller market we can immediately ignore all “stale” opportunities that have been available for some time. They can safely be considered to be damaged goods, unmonitored postings, or scams. Ignoring them will save us a ton of time!
Reduce seller effort
It is a lot of work to be a seller. Although a hot seller market allows sellers to get more value for their money, it can also force them to spend way more time on the selling process. Buyers can reduce seller effort through:
Great communication
Timely, concise, and thoughtful communication reduces seller effort and provides a positive indication of future interactions.
Thoughtful and thorough applications
Sellers can spend a lot of time sifting through poor applications. We should make sure our applications are complete and attempt to answer any questions before they arise.
Seeking out hidden sellers
Sellers can become so swamped with buyers that they take actions to reduce inbound buyers. These actions could include not listing opportunities publicly, not advertising the full benefits of an opportunity, or only considering the first few qualified inbound buyers. This is an opportunity because the buyers who are considered for these opportunities will have less competition.
Networking is the best way to find opportunities that are not publicly listed. Ideally, we would have strong networks before we enter a hot seller market, but even if we don’t, we can use our application experience to build up a network as we go.
It is also possible to predict that opportunities will appear before they do. I found my most recent job by sifting through lists of energy startups that recently closed funding rounds. Companies that close funding rounds or win large contracts will hire as a result and we can sometimes reach them before the opportunities are posted.
Maximize Seller Value
Sellers are looking to maximize the value of their inventory. If we can increase our return to the seller we become more attractive buyers.
Reduce ramp-up
Sellers want value quickly. If we can position ourselves to provide value quickly we can increase our value. We can do this by already having skills and key resources available before engaging with the opportunity.
Be a top applicant
We can become a top applicant by lowering our standards. We don’t want to drop our standards too quickly because as buyers we also want to maximize our value. But we need to be competitive and realistic with our position in the market.
Sometimes what feels like lowering standards turns out not to be. The apartment we settled on had very poor photos, but we decided to take a look since we were in the area and it was much better than expected.
Beyond seller experience
Even if we create an amazing seller experience we may not successfully buy in a hot seller market. It is worthwhile to invest some time mitigating the bad things that could happen if we fail to buy.
Make a plan
Once we have identified we are a buyer in a hot seller market, we should figure out the maximum time we can happily spend searching in the market. The more time we can stay in the market, the more chances we will get. Set a timeline and create off-ramps in case we do not buy.
A key part of making a plan is mitigating desperation. Desperation will not lead to good outcomes and can cause tremendous discomfort. Until we are confident that we will not become desperate buyers we have not finished the planning process.
Eliminate our need to buy
We should ask ourselves if we need to buy or if we can get what we need from less competitive markets. Do we even need to change jobs or change our housing? Can we rent housing instead of buying? Can we do short-term work instead of taking a full-time job?
Be kind to ourselves
These market dynamics are not our fault. We shouldn’t beat ourselves up over the struggles of unfriendly markets. This is true in all situations but is especially important when the going gets tough. Good luck out there!
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