Real estate agent’s parables about not waiting the extra day to make an offer lest someone come in and buy the house out from under have been in existence for a long, long time.
They reached a peak in 2005 when offers rolled in within the first hour a home came on the market (for better or worse) but have been less prevalent as the market cooled.
Every now and again I’ve read a real estate blogger discuss the multiple offers they’re seeing on properties. I keep seeing these on Twitter. I see them on the blogs. And every time I tend to shake my head and figure it’s isolated.
Then there was this week.
Last weekend I showed another half-dozen homes to the first time buyers I’d previously chronicled. Given their price range our focus has been on bank-owned homes; this past weekend we found one in decent condition.
First view was Saturday. Second, with the grandparents, was on Monday. We wrote an offer late Monday, I received the Loan Status Report (like a conditional loan approval) on Tuesday and I submitted the offer.
Whether the bank would be interested in an offer 20% below list price became irrelevant – there already were two offers in hand (the list agent didn’t return calls fast enough for me to know this before preparing the offer.)
My buyers have asked me to watch the sale but my hunch is it’s going to go through. Most bank-owned homes seem to sell for cash and fairly quickly.
The last two days another buyer was searching for homes in Westbrook Village. We found the perfect house. She needed only for her son to see it when he comes back into the Valley from Calgary next week.
An offer came in late this afternoon.
Maybe this offer will stand. Maybe it won’t. But for the second time in a week, a delay cost one of my buyers a chance at the home they really wanted.
Again, we haven’t even gotten into the issue of price. There’s an assumption by buyers that negotiations should start somewhere around 10% of list price. In some case that works. But in others, especially those where the home’s priced competitively to start, 10% under asking price may not work. Not when there’s more than one offer on the table.
Two such situations in a week certainly don’t make for anything more than a coincidence. Show me a few more of these (and hopefully on one of my listings) and I’ll believe there may be a pattern in the making.
And speaking directly to my Canadian readers … our dollars are at parity, though the Canadian dollar has slipped a little. There’s the slightest rumbling that sales may pick up (if not actual home values.) I’m not saying this is the time to buy. But if you happen to have an extended time frame, it may be worth shortening it just a little bit.
Worth a thought.
[tags]real estate negotiations, Phoenix real estate, Canadian investors Arizona real estate[/tags]