Here was a unique situation … my buyers found a bank owned home that they really liked and made an offer. The house had been on the market for five days but they were fortunate – there were only two other competing offers.
(Wait … you didn’t know that multiple offers are standard for REOs in the Phoenix real estate market these days?)
Back came the bank with the nebulous, ominous counter … give us your final and best offer. At my advice, they held their ground at list price with a small seller contribution to the buyers’ closing costs. And they got the house.
Here’s the key element – the buyers didn’t bid against themselves. They decided before writing the original offer what their best offer would be. If it wasn’t enough then this wasn’t going to be the right house for them.
Holding one’s ground isn’t easy especially after you’ve decided this is the one house for you. But that’s often the best strategy. It’s just a matter of having either a buyer or (more importantly) an agent who has seen multiple offers in the past and knows not to panic – especially when that multiple counter doesn’t have a firm number written in already.
On a somewhat related note, the very wise BawldGuy has taken a long look at the Phoenix real estate market and come to a conclusion eerily similar to mine in its brilliance:
It’s a seller’s market for REO’s only. The rest of the market is still firmly ensconced in the buyer’s market column. FIRMLY. But as soon as the REO’s are gone — guess what? The next cheapest homes are gonna be the ones who’ve been stomped on and falling down the same stairs for nearly three years now. Suddenly, they’ll be the prettiest girls at the dance. They’ll begin to sell in ever increasing numbers.
Since everything’s still ongoing I can’t discuss details but I’ve seen this in action – with the bank owned homes out of the way, the next best priced homes become the centers of attention. It’s not mere speculation.
We may not be at the bottom but the pit doesn’t look nearly as bottomless these days.
[tags]Phoenix real estate, bank owned homes[/tags]