Memorial Day is a time to remember the people who serve our country, those who have fallen in battle, time with family & friends & the start of summer. When I put my newest listing in MLS on Saturday at midnight, I hardly expected to have my first showing a mere 10 hours later. My seller was ecstatic! The kitchen remodel she chose to do prior to listing had dragged on way too long, but it was paying off.
***Buyers, I’m going to pause right here and speak directly to you… know your market. Just as I tell Sellers to know their competition, you should know who yours are. What are the potential roadblocks to keep you from buying your next home? If you don’t know what they are, you just might miss out on a good home. If you’re buying in a “Seller’s Market”, be very aware of this… let me get back to my story.***
With tons of comps in our favor because we were listing at the end of the “typical” spring season, I wasn’t expecting multiple offers and tons of buyer traffic that my colleagues with listings nearby had experienced, but for a completely updated home in the center of highly desirable Scottsdale, 85254, I did expect good traffic and a few serious buyers.
I got an offer on day 3- Memorial Day Monday. The offer was all cash and from a trust that was buying a home for a son. The offer was fair, but it came in $65K LESS than asking (what?!!). My seller didn’t get flustered or offended, but she was adamant that no way, no how would she ever consider selling at that price. We planned to counter.
Within a few hours of receiving that offer, I went to a previously-scheduled showing to another buyer who had contacted me weeks before after seeing my “coming soon” sign out front. Within an hour of that showing, another agent showed it to his clients too.
As a courtesy I told both the buyer and other agent about my other offer to make sure that they were aware of it in case they had interest. This gave them an opportunity to act if they were inclined to because I had not yet fully reviewed the offer with my client. The agent said his clients were interested and would write and send an offer. This offer came in about 12 hours later, it too is all cash and very clean, but it is $55K higher.
Which one do you think my seller wants?
The caution I give every buyer making an offer in a market that favors sellers is this: if you come in low, you leave the door open for every other buyer out there who might possibly want this home. Sellers want every penny that they can eek out from a sale. If a better offer comes in, you had better be prepared to “put up or shut up”. You may even need to learn the hard way and lose a few homes in the process.
Ask yourself “How disappointed would I be if I lost this house”? Then if you are willing to pay closer to list price, ask yourself how disappointed you’d be if you didn’t get it because you blew your opportunity to present that number to the seller? Are you willing to risk losing this house because it’s going to take longer to negotiate? I get it- you don’t want to pay more than you have to, but how much time and money will you lose waiting for the next “right house” to come up again?
Food for thought…