I hadn’t even THOUGHT about selling my house, but after the month I’ve had, I’m thinking about it! ~Agent Val
The market started brewing at the beginning of the year, and it’s only getting HOTTER!
Listings are flying off the shelves! If you happen to have a house for sale and you’re not getting any bites, you’re probably just priced too high. If you’re still on the fence and waiting for the “right time to sell,” maybe these stories will push you off!
MY RECENT EXPERIENCES
REAL SCENARIO #1:
My San Antonio first-time home buyer was recently engaged to get married; we’ll call him Mr. Green (for the sake of privacy). Mr. Green is ready to buy a home for himself and his bride-to-be. One afternoon, I had arranged two showings for that same evening. By 8:00 pm, we were touring house #2.
The house was in impeccable condition, priced within their budget and in an area they wanted. In my book, that’s a grand slam! I saw the stars twinkling in their eyes and knew I had to give them their fair warning,
“I know it seems quick guys, but if you want this home, we need to make an offer tonight!”
I saw their hesitation, so I shared the one common mistake many first-time home buyers make:
First-time home buyers are often surprised to find “the one” so quickly that they choose to “look at a few more, just to make sure.” More often than not, that extra time results in a missed opportunity. It’s during that “loss” when a buyer realizes just how much they wanted that home. The side-effects of this mistake result in deep regret along with the buyer comparing every home thereafter to, “the one that got away.” (It’s painful to watch.)
I gave them a brief moment to soak in the information and then I asked the million dollar question:
If I call you tomorrow to tell you this home is already sold, how would that make you feel?
I explained that I’d be in their corner regardless of their decision. They glanced at each other, gave each other an accepting nod and gave me the green light. “Let’s do it!”
I rushed to my home office to start the paperwork; it was almost 9:30 pm. I pulled up the listing in MLS to gather information and guess what? The new listing status read, “ACTIVE OPTION.” It was under contract. It was gone. TRUE STORY. I called the buyers to let them know right away. Of course they were disappointed, but I hope there was a sense of peace knowing they acted quickly. If they had waited, they would have regretted it.
DAYS ON THE MARKET: 1
REAL SCENARIO #2 – SAME BUYERS, DIFFERENT LISTING:
I showed them two more homes. Mr. Green loved one and she loved the other. Even after experiencing their first home “loss,” they still decided to wait and take the night to think things over. I was behind their decision 100%. I believe they should both fall in love with the same thing (or at least feel they can compromise). Mr. Green called me the next morning to say he was ready to make an offer. By the time our offer got into the hands of the listing agent, two other offers were already there.
I advised Mr. Green to make his best offer upfront. At this point, trying to “wheel and deal” would not get the house. Sellers are not required to counter all of the offers. They usually pick the best one and decline the others.
“If you really want this house, show them you’re serious. Make an offer so strong that if you still lose this house, you know you gave it your best shot.”
We lost. The offer that gave the seller the highest net profit won.
DAYS ON THE MARKET: 2
REAL SCENARIO #3 – We’ll call this buyer, “Mr. Red”:
Mr. Red is a little more experienced and has watched listings quickly disappear online. We saw a listing in his area and in his price range. There was a particular feature he wasn’t crazy about, so we kept house-hunting. The “feature” was probably one reason the house had been on the market a little while. After seeing what else was out there (for about 2 weeks), we noticed that the “feature” house had a price reduction. Mr. Red decided to make an offer. We offered full price (at the new price).
Lo and behold, by the time our offer got into the hands of the listing agent, THREE other offers had been submitted. This situation created quite a stir and a “bidding war.” I alerted Mr. Red immediately and asked if he wanted to make any adjustments to his offer, to place him in a better position. He decided to offer the original list price (before the price reduction). We STILL lost.
TOTAL DAYS ON THE MARKET: 89
DAYS ON THE MARKET WITH THE REDUCED PRICE: 8
How can someone improve their chances during a bidding war?
Don’t ask for too much – limit contingencies. If you’re making an offer below list price, asking the seller to pay some of your closing costs, and needing two months to close (for example), you’re weakening your leverage. If you give full asking price and ask for little to no closing cost assistance, your offer will show you’re serious. If you REALLY want that house, offer a little more than what the seller is asking for and eliminate contingencies. You’ll definitely grab some attention!
Are you a home owner who just got the itch to sell? Are you ready to see a bidding war on your house?
Contact your local REALTOR® today! Why wait? The market hasn’t been this HOT in almost 10 years! Don’t have a REALTOR®? Contact me using the form below. I’d love to help you. If I’m not in your area, I’ll find someone who is!