With the return of Daylight Savings time and milder weather there has been a marked increase in real estate activity. When you throw that activity up against the low inventory of homes on the market you start to see what this past weekend looked like for many… Clients finally find a home they love and are ready to make an offer only to find out that the home just went under contract or that there are multiple offers and Seller has asked for Highest and Best!
Those “low-ball” offers of the past few years are increasingly being met with laughter and sometimes-even anger!
No we aren’t yet in a real Sellers’ Market; although, there are truly a few Sellers’ Markets in town. However, we have for all but a few markets moved out of the Buyers’ Market period of the past six-to-seven years into a normal market. With that in mind, it might pay to think about how to become a better buyer and make a successful offer, unless of course you just love the process.
Becoming a Better Buyer…
Once you’ve found that house that looks like it could be your new home… don’t insult the Seller by “dogging” the house! Believe it or not sellers don’t always take the highest offer. They take what they feel is the best offer and there is a measure of emotion involved in that evaluation process especially when selling a home in which a significant portion of their life may have been lived… they want to sell to someone that will appreciate and enjoy the home. This will often be the first step in winning the battle of wills.
Secondly, make a fair and reasonable offer. Have your agent do a market analysis for you as if they were listing this home… what is a reasonable range for an offer… You can offer on the low side of that range and still be considered a reasonable offer. Compare this home to other homes in the area offering similar features and amenities … Where possible do your homework (actually, your agent’s homework) to find out the sellers motives for selling… What’s important to the seller. Sometimes, little things like flexibility in possession date can make a deal work. Your agent’s job involves more than simply filing out paperwork… use their experience and expertise to your advantage. If they are unwilling to do this work find an agent that is.
Finally, craft a clean offer! One filled with contingencies and special requests leaves a Seller feeling nickled-and-dimed or makes your offer so weak as to leave you no negotiating power. For example an offer contingent on the sale of a home that is over-priced or not yet even on the market or on the market as a For-Sale-By-Owner has little power in negotiating on price and even less of truly being successful. Again, hopefully you have an agent that will guide you through the offer process as a teacher and advisor… not one who simply replies: “Well we can try and see if they’ll accept it” rather than at least showing you what the normal discount rates are or helping you build a case to support a winning offer. And after all that’s what you want… a wining offer… And that usually means an offer that is a win-win (as cliché as that may sound) for both buyer and seller. This type of offer more often than not is one where the Seller is working as hard as you are to make the deal work.
May the Market be with you.
