The Hunt Team - Real Estate Blog
Buyers when you see a home you like don’t wait to make an offer.
by Larry & Meredith Hunt, The Hunt Team, Real Estate Consultants on 06/04/12
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.
Sellers and Pricing Their Home For Sale
by Larry & Meredith Hunt, The Hunt Team, Real Estate Consultants on 05/16/12
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
What Homes Sold in February? For How Much? And When?
by Larry & Meredith Hunt, The Hunt Team, Real Estate Consultants on 03/26/12
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.
Where, Why, When & How of Real Estate
by Larry & Meredith Hunt, The Hunt Team, Real Estate Consultants on 03/26/12
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.
