SunCrest Market Update – May

Follow along:  Newsletter | Facebook | Instagram 

SunCrest Market Update-May 

What Do You Do When Your Home Gets Multiple Offers?
Imagine you’ve just spent time getting you house ready to sell, it’s all gussied up, and you and your REALTOR plant the for sale sign in the yard. The marketing plan is in full swing and your work starts to pay off—you get an offer! Wait, then another… and another! As we continue to experience a shorter supply of available homes for sale, some homes are receiving multiple offers leaving the sellers wondering what to do next.

Here are the most common options a seller has when presented with multiple offers.

Accept or Counter One Offer
Sounds simple enough, right? The Seller looks at each of the offers and determines that they want to accept or counter only one of the offers. Then they may just reject all the other offers. It simplifies things, but there are risks. They may not reach an agreement, or even if they do, sometimes the deal falls apart later on and it’s back to the drawing board with buyers, and some of the other offers may now how moved on.

Counter All
Rather than accept or counter only one of the multiple offers, the Seller may elect to provide specific counteroffers to all of the interested parties and give them all the same time frame to accept or reject the counteroffer. This can get complicated, but sometimes it pays off with a higher purchase price. However, there are also risks. Some buyers who get a counteroffer might just move on, and sellers can lose interested buyers who don’t want to get into a perceived “bidding war” scenario.

Highest and Best
Rather than negotiating with only one of the multiple offers, or putting together multiple specific counteroffers, the Seller can just tell all of the people making offers to come back with their “highest and best offer” and give them a deadline. Much like countering all offers you can end up getting more for your home, but you can also chase away buyers who don’t want to feel like they’re in an auction.

Reject or Let Lapse
While this is rarely the case, a seller may choose to reject all of the offers or choose not respond by the offer response time. Perhaps they didn’t like any of the offers, seem too far off to make a counteroffer, or the seller has had a change of heart. Sellers risk alienating those who made the offer, and passing up a chance to at least negotiate with an interested party.

Our Take:
First of all, we should insert our legal disclaimer here—The above situations are offered as a matter of opinion and not counsel, should you find yourself in a multiple offer scenario. It might seem like having multiple offers is a good thing—and it can be, when handled correctly—we think no matter what, you should be having conversations about what to do about them in the pre-listing/pre-buying consultation stage. Hiring an experienced agent or team to help explore the best price, terms, and timeline can help avoid failed offers or costly pitfalls and help achieve the best outcome your buying or selling situation.

Our SunCrest Market Update is a hyper-local analysis of the most up-to-date information regarding the SunCrest real estate market.  The previous month’s SunCrest housing information and future editions are released monthly.

Posted on May 23, 2019 at 9:32 pm
Scott Steadman | Category: SunCrest Market Updates | Tagged , ,

May SunCrest Market Update

Follow along:  Newsletter | Facebook | Instagram 

May SunCrest Market Update – 5 Tips to strengthen an offer

Spring is typically a busy time for the real estate market, and this year is no different. With a competitive market of buyers out there, you could miss out on the home of your dreams if you’re not prepared. Here are 5 tips to help your strengthen your offer:

1) Pre-Approval 
Don’t put he cart before the horse. Before you even look at a house, you need to get your financing in order. It’s easy — complete an official mortgage application, supply the lender with the necessary documentation (think: bank statements, pay stubs, and tax returns), and obtain your current credit rating. The lender then issues a pre-approval letter which can be sent with an offer. This lets the seller know you’ve got the financial means to purchase their home.
2) Earnest Money 
Also known as earnest money deposit, this is a check you write to show your good faith (aka serious intentions) in your offer. Think of it as putting your money where your mouth is. Sometimes it’s refundable, and the amount varies though typically 1% is customary. In a competitive market, a stronger (and even non-refundable) earnest money deposit may help your offer stand out.
3) Deadlines
Nobody likes surprises when dealing with their biggest financial interest. Working quickly and efficiently through inspections, disclosures, financing, and appraisal, not only helps give confidence to their seller, but helps show your commitment to purchasing the home. Meet your deadlines to prevent the seller from pulling the plug.
4) Price 
Sure, this may sound like a no brainer, but in our current real estate climate, many homes are selling at or above the seller’s asking price. If you’re negotiating tactic is to  “start low cause you can always go up,” it may make the seller discard your offer altogether, especially if there are multiple offers on the table. Go too high, though, and you could overpay. This is where having experts in the field who can run analyses and play scenarios becomes a must.
5) Terms 
You’ve heard the old adage “knowledge is power,” right? Now more than ever, there are so many tools, tips, and tricks to writing the terms of your offer. Are the sellers relocating? Are they wanting for kids to finish school? Are they selling the home “as is”? The key here is communication. Finding out what’s most important to sellers and making an offer that works for both you and them may actually win out over a higher price offer.

Our take: 

If you find yourself in a competitive scenario, focus on what you can control. While you may not be able to submit the highest offer price, you may have the ability to give the seller time. Contrary, you may not have time with a pending job offer or school commencement, but may be able to offer a higher price. Whatever the scenario, we recommend leveraging the relationship of an experienced local market expert to negotiate the house you want to call home.

Our SunCrest Market Update is a hyper-local analysis of the most up-to-date information regarding the SunCrest real estate market.  The previous month’s SunCrest housing information and future editions are released monthly.

Looking for sold data? Sign up here to have it delivered straight to your inbox! 

Posted on May 22, 2018 at 3:23 pm
Scott Steadman | Category: SunCrest Market Updates | Tagged , ,