It is a tough market for buyers…who would have thought. We are seeing 10-20 offers on every property listing, almost always over asking price and often cash buyers. Hang in there buyers, there is just the house out there for you, but be patient.
(Sigh.) I can’t tell you how often we hear questions like these in our business:
- “Got any good deals?”
- “I’m looking for a good deal.”
- “I only want to buy property if it’s a good deal.”
Then, there are folks who say:
- “Let me know if you have any good deals.”
- “I’ll work with you if you have a good deal.”
- “Maybe if you are the listing agent I can get a good deal.”
Let’s face it. EVERYONE wants a good deal. I doubt you’ve ever heard someone say “I want to get ripped off and pay way too much for a property!”
There are 7 days in a week and 24 hours in a day. In this time, our efforts will be used on our buyer and seller Clients who’ve committed to working with us and who are serious enough to have their financing and cash reserves in order before we see property together on an exclusive basis.
We take our role in representing our Clients seriously and our Clients take it seriously too. We find great satisfaction in helping to make things happen for them. We have no qualms about telling our Clients if we believe a property is overpriced or being clear that if they want the property, they’ll have to be willing to pay a premium compared to the competition of buyers for the same property. Our seller Clients appreciate that we sometimes counsel them NOT to take the highest offer but to focus on choosing the buyer who is most likely to close the sale, as long as the price is reasonable.
Now, about those good deals. When we do come across “good deals”, we’ll let our Clients know about them first. There is a huge difference between a “customer” and a “Client”, so we reserve our more in-depth communications for a select group. The last thing our Clients need is for our efforts to be diluted…
Checking Out the Goods
Last night we had a great conversation with a newly engaged couple looking to make their first big purchase together. They asked this question:
“Can we still make offers on other property while we’re in contract on a purchase already?”
My question back was, “Would you ask someone to marry you if you were already engaged to someone else?”
Being in contract to purchase a property indicates that you’re committed to purchasing that property. Much like a fiance is committed to his fiancee, there may be an expectation that one not go out for the purpose of committing to another.
Similar to being engaged for marriage, a home purchase contract can include a contingency period when the buyer has the opportunity to “check out the goods” of the property to make sure it’s sound enough to make that final, lasting commitment.
We had a lively conversation about which circumstances might justify the submission of several offers at once. Here are a few things we discussed:
- Only make offers on multiple properties if you can afford to purchase them all.
- If you are waiting for a response from one seller and decide you want to buy another property instead, withdraw the offer on the other property first! (Same concept as NOT asking someone to marry you if you’re already engaged!)
- Work with a reputable agent who can exercise some important controls. Remember, in order for a buyer to be taken seriously, their agent has to be taken seriously too.
By the end of our meeting with this lovely couple, they committed to working with us for the purchase of a HUD-owned property. Since we are approved by HUD to assist our buyer clients, we’ll enjoy knowing that our clients reached out to us already knowing we’re qualified to help them. We can consider it a successful first date!
It’s a bit different now. Buyers are abundant and available homes in affordable price ranges are not. Homes garner multiple offers above asking price with many important contingencies shaved off the contract!
Here’s the deal. When a real estate professional tells you to BUY NOW, they’re not necessarily just trying to make a sale! Any of us agents who’ve been in business long enough have seen the ups and downs of the market and the frustration our clients face when they don’t get off the fence in a timely enough manner.
If you’ve set a goal for yourself to do something in life such as purchase a home or sell your home, PREPARE NOW! You never know when it will be too late to enjoy maximum benefits.
However, don’t feel pressured — the timing must be right for YOU…