Thursday, August 7, 2014

Its a Sellers Market! Whats a Buyer to do. Oh My!!!

Oh My! how the tables have turned. It seems like just yesterday we were deadlocked in a buyer’s market where a seller had to do just about everything a buyer asked to become “the one.”
Well we're not in Kansas anymore Toto! 
Fast-forward to summer of 2014 and  buyers are frustrated with  multiple offer situations, highest and best scenarios and a lack of inventory.
So Whats a Buyer to do???

Here’s a thought: Offer what the sellers are asking!

Real Estate values have risen over the last two years and forecasts call for moderate increases to continue. "Stealing" a property is not going to happen! If its a house you want and your Realtor has done their pricing homework on your behalf be Aggressive. At current rates every $10,000 financed is about $50 per month or  a couple of Latte's a week. 

Increase the earnest money.

Want to show a seller how serious you are? Consider putting 10% or more down in earnest money. This may seem risky for some, but earnest money is there for a reason. Assuming you follow your Realtors advise regarding financing, appraising and inspection contingencies your money should not be at risk. If a cash deal make sure your Realtor has included an Appraisal Contingency in the Offer/Contract 

Make sure the offer is uncomplicated.

Sure, it would be nice for that wicker furniture on the deck to stay or that carpet stain in the bedroom upstairs to be professionally cleaned, but how important is it? Are you  buying wicker furniture or a home. Are you buying clean carpet or the 4th bedroom for your growing family? Keeping the terms simple might be worth a lot of money to the seller. Considering the seller has enough to think about and do prior to finding, negotiating and closing on a new home of their own. Where do you think carpet-cleaning falls on that list?

Find out what terms are important to the seller prior to writing the offer.

If you are  flexible on the  closing date, or don't  care that the flat-screen mount stays in the living room, Have your Realtor ask the seller’s agent up front what you can do to make the offer more enticing to the sellers. Maybe they want a longer escrow, or the option to take their washer and dryer with them. If you are flexible, this could help you look like the best “pick of the litter” if the home goes in to multiple offers, even if you don’t have the highest offer price.
Finally the best thing to do is to convey to your Realtor how much you want the house. What you are willing to do to make it happen, and what it means to you if you are not successful. The last thing you  want to feel is regret for not trying harder, or not confiding in your agent.

Written by Geoff Bray

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