The Hunt Team - Real Estate Blog
Buyers when you see a home you like don’t wait to make an offer. We are working with a buyer who has found 3 homes that he is interested in and has either made offers or wanted to make an offer. To date he has not had an offer accepted.
The first home is a situation where the sellers are upside down on their mortgage. The offer was made by the buyer and the parties were unable to negotiate on a price that was agreeable by both parties. This offer fell apart which is a sad situation for all. The sellers of this property are now at a point where they either have to come to the table with funds to make the deal come together, show cause that they are eligible for a short sale, or take their home off the market. We are sure that none of these options are what the sellers were hoping for. We will have to wait to see what the sellers will do. The buyer was disappointed not to come to terms and purchase a home that met his needs. This is a situation which is a common occurrence in today’s market and disappointing for all.
The second home had just come on the market. We advised the buyer after previewing the home at the broker’s open house that it was a home that would meet his needs and we thought he should see it soon. The buyer waited a week before setting up a showing and the house did work for him. He asked us to make an offer on the home. When we contacted the listing agent, she advised us that the seller had just accepted an offer on the home and the buyer could make a backup offer. We advised the buyer that this was not in his best interest as it would prevent him from making an offer on another property. Instead we advised the listing agent that if anything should happen with the current offer to let us know as we are working with a buyer who would be interested in making an offer.
The third home was also new on the market and seen on the same day the home above was seen. On the day the buyer saw this home there were back to back showings happening on the home. The buyer then waited 2 weeks before going back to see this home though he was aware that the other home he was interested in had an accepted. The buyer decided to make an offer on this home. When the offer was made, we were advised by the listing agent that another offer was being presented at the same time. Since the home had another offer, the buyer decided to increase his offer which was a smart moved but means he may have to pay more for the home. We are now waiting to hear whether or not the buyer’s offer has been accepted by the seller.
This is not the first time that this has happened to buyers and it won’t be the last time. Buyers can’t sit back and wait on making offers homes they like, the market has changed and homes that are priced right are selling quickly. All buyers should keep in mind that if they leave any home without making an offer, there is a possibility it will no longer be available. Buyers when you see a home you like don’t wait to make an offer.
We recently ran into an unfortunate and disappointing situation with one of our customer about pricing their home for sale. We work very hard to help sellers understand the real estate market and that homes are commodities with only the buyers setting the value of a home.
We contacted these sellers after their listing had expired with another agent to talk about listing their home with us. The previous agent had use value range pricing to indicate what the seller would accept as an offer price on their home not a list price. We don’t believe in value range pricing. We believe that value range pricing is a way for an agent to reduce the price on the property and the buyers will start negotiating below the lowest value of the range. Many buyers believe that the value range price is really a list price. (If you would like more information about value range pricing give us a call or email us.)
As we sat down with these sellers to talk about pricing their home, we advised them that once you establish a price for your home, you can’t increase the price unless you do major improvements on the home. The sellers were not happy to hear this. They did understand this dynamic. We listed their home at the lowest value of their previous value range.
We did not get any showings. (See below what no showings means.) We provided the seller with information about the marketing, advertising, exposure on the internet, and what was happening in the market. These sellers were stuck on a price and didn’t want to hear what the market was telling them. They couldn’t understand that real estate is a commodity. It doesn’t matter what the seller wants, what the seller owes, or what anyone else thinks….the buyers set the value.
The seller continued to leave their home on the market at this price and wouldn’t budge. The house was on the market for 5 months with no showings. The sellers then decided to refinance their home and had to take it off the market.
Now these sellers are thinking about placing their home back on the market but will only do it if they can increase the listing price by $50,000. They have done nothing to increase the value but believe since other homes have sold for more that are older and not as good a street that theirs is worth more. They only look at the criteria of the homes that sold that are not as good as their home but don’t look at the criteria that makes the homes that sold worth more.
These sellers just don’t understand that if the buyers do not perceive a value then they will not buy the house. This home unless the seller reduces the price will sit on the market. We don’t take listings, we sell homes. We will not take this listing unless these sellers list their home at market value.
No Showings: According to the National Association of REALTORS, if a home is priced correctly the owners should receive one offer for every 10 showings. In our market, the number of showings that your home should get weekly depends on the price range.
1. If your home is not being shown, it means that the buyers and agents think the price is too high.
Recommendation: A significant price adjustment.
2. If your home is being shown, but no offers are being made, it means the buyers are bidding on other homes that they think offer more.
Recommendation: A moderate price adjustment.
3. If your home is in the running, but the buyers buy something else, or if the buyers view your home a second time, but they buy another home, it means that we are most likely close to receiving an offer.
Recommendation: A minor price adjustment
Check out our Town Pages on our Website for updated statistics. The Spring Market is definitely here. Many homes are going under agreement. Don't wait to put your home on the market...now is the time.
Larry and I have found real estate to be both interesting and challenging. We both have backgrounds in business and are now enjoying working with the public. During the process of helping our clients with their real estate transactions, we have built many personal relationships. This is the best part of our business, helping clients in their next step in life’s journey. We are finding that people are now moving based on lifestyle needs and we enjoy helping them meet their goals.
In the process of helping our clients to sell or buy homes we run into new, interesting and sometimes comical situations. We realize that most people are unaware of the complications that can arise from real estate transactions. We have also become aware that many people think that real estate transactions are easy and that they know more than a real estate consultant about real estate. This blog will discuss some of the challenges and successes we have run into during the process of a real estate transaction. We hope you will find this helpful, enjoyable and sometimes comical.