Ah, first time home buyers. I love them! I love them because they are starry eyed and full of excitement about getting into their first dream home. I get more pleasure out of getting them into their first home and living vicariously through them in their moments of joy. This is what gives me the most satisfaction and pleasure about my profession!
Because they are rookies in the game, I try to spare them some disappointment and pain by showing them the shortcut - so to speak - in their journey offering them advice which would serve them well. But, alas, they insist on making the full journey, including walking through the minefield of rejection on their own, when I was clearly standing there pointing them to the painless walkway that lay above the minefield. Most first time home buyers must experience growing pain.
I have a lovely young couple who wanted to make an offer on a lovely home in Sunnyvale. I knew from the get-go that there would be multiple offers (not just a few, but a lot: 30+ disclosure packages were handed out). We prepared everything looked through the thick pile of disclosure items and decided this was the best house they had seen in the numerous ones they saw so far.
Knowing that this was their first home and their first offer, I wanted to spare them the pain of outright rejection, so when they gave me price they wanted to offer (it was a decent price but given the stiff competition, we were going to be way low; however the other conditions were great), I asked them to reconsider; but they insisted they did not want to pay more. We all knew what we were offering was less than what homes had sold for in the area within the past few months, according to the CMA, I had done for them.
I certainly understood their situation: first home and first offer and the fear of over paying. So I decided not to push the point any further, I knew what lay ahead (painful walk through the minefield) but I put on a smile and told them we would give it our best shot. Naturally, I did not tell them what I already knew: no way we were getting it for that price. I knew they had to experience this pain so that they could grow and be stronger for the next round.....
When I walked in to present the offer, I learned it was even more dire than I had thought the night before, there were agents waiting in line ahead of me to present their offers. By the time I walked in to present to the sellers, I learned there were over 15 offers, including ones that were not presented in person. The sellers liked the other terms and us, but they informed us our price was in the bottom quadrant, but they were willing to give us a chance. They wanted me to call my clients and give them the opportunity to make the price more in line with the others. I stepped outside and dialed the husband and told him about the good news: we had a second chance. His answer: ......... No. We do not want to pay more.....
Fast forward one day and presumably some heartache in the privacy of their own home. I got an email asking to see more homes this weekend. He told me they learned about the market condition and he could explain that to their parents as well.
What did we learn? The experience did not kill them, so I presume it made them stronger. And that is a good thing for all involved. Now that I have endured the pain with them, I am now looking forward to experiencing the joy with them in the near future.
Steve Mun, Silicon Valley Realtor
http://www.stevemun.com/
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