Recently, I was talking with a few of my buyers, and they all had the same idea. These buyers aren't necessarily hot, but are looking for that right home, with the right price. The idea was: I like this home and that home, but I want to wait an see if they have a price reduction, or they want to wait for the best value.
Why You Shouldn't Wait For The Price Reduction
The real estate market today, well at least real estate in Logan, UT, has been picking up dramatically. I don't know if we are necessarily in the so called buyers market anymore.
What I mean is this: If a home is priced right, or is a great value, we are seeing multiple offer situations.
Buyers are in bidding wars to get those great homes. The homes that aren't getting the multiple offers are either over priced, or in poor condition.
Why You don't Want To Be In A Bidding War
If you're a buyer in this market, a bidding war is not what you want to be in. It can turn that great value, into an emotional spending spree.
What I mean is this: You want this home, you fell in love with it, and now you have to compete with another buyer who has the same feeling. It may turn out, the home with the great value, just turned into the home that was overpriced.
If you're a buyer in this market, and you're waiting for the great value, you're not alone. Chances are, let me take that back, almost always, there is at least one more buyer in the same shoes. So, what's happening is, the great homes are seeing bidding wars, which means the seller is in the drivers seat, and that great offer may not be so great anymore.
Now, if you want to be all alone on your offer, and don't want to play that bidding war game. Maybe you should take a hard look at the homes that are, in your mind, over priced. If you think about it, you're not the only buyer that thinks the home is over priced. And if the home has been on the market for a fair amount of time, it just may be that great deal you have been looking for.
Let me explain:
Why Should I Look At Over Priced Homes?
Home A = Overpriced, great condition.
Home B = Great Price, great condition.
Home A - Multiple showings, and has been on the market for 3 months.
Home B - Multiple showings, and has been on the market for 1 week.
Home A - Does not have any offers, and are starting to feel down on their situation.
Home B - Has offers coming in, and a lot of activity, chances are, this home won't last.
Home A is going to be more negotiable on an offer. You may have heard of the low ball offer, these are the homes that are getting those low offers, and most of them are going to the closing table for well under listing price.
On the other hand, Home B can reject that low offer, and chances are if you are the one who made it, your out of the loop.
Why An Overpriced Home Might Be The Best Value
- The overpriced home in my example above just may very well be the best value.
- Here's why: No bidding war, more negotiable, more willing to help with closing costs, and that price reduction may have been sitting in the back of the sellers mind, you just needed to induce that reduction with an offer.
Don't wait for a price reduction, submit an offer, and negotiate the price reduction. Buying a home for a great value isn't about waiting, it's about negotiating the best price for the best value. Any experienced real estate agent knows this, but it's just as important for you to know as a potential home buyer.
Comments(9)