Special offer

The Market is Heating UP, Write Strong Offers

By
Managing Real Estate Broker with Keller Williams Bellevue 47538

The Market is Heating UP, Write Strong Offers

I have a client who's been looking for a while.  This week a new home came on the market that met their criteria for the most part.  It is in a popular area and in great shape.  My CMA indicated that last few similar sales within a half mile had an average of only 14 days on the market; a long of 20 and a short of 7.  The 4 of the 5 of the homes had sold for 100% of list price, the other for 97.8%, for an average of 99.56% of list price. 

My clients toured the home and liked it.  It wasn't perfect, but was as close as any we'd seen.  They decided to write an offer.  Based on my research I suggested we would have to be aggressive.  This was further encouraged when I spoke to the listing agent who let me know another offer had come in, but hadn't been reviewed yet. 

I asked her what she could tell me about it.  (I'm often amazed at the information another agent will volunteer if I just ask)  She said they had some reservations and was hoping we would write a nice clean offer.  My clients are renting month to month, are pre-approved and can close very quickly.  We tailored the terms to what I believed the sellers would find attractive and met with my client to go over the details and decide on the offer price. 

My clients saw the data, liked the house, knew there was another offer and elected to come in low.  Not real low, but below any of the comps I had shown them.  It was against my advice, but I thought we still might have a shot because of the comments from the listing agent. 

My advice to come in strong was right, my hope to still have a shot was wrong.  Our offer was used to motivate the first buyers to upgrade their offer and resolve some of their other issues.  We weren't advised of any other conversations they had.

The moral of the story, believe your comps not the media from six months ago.  Some markets are seeing multiple offers; others might not be yet but may be soon.  Advise your clients when they find a house they want to buy, to make the offer they are willing to live or die with. 

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Dan Tabit       206-310-8629    425-868-SOLD(7653)  DanTabit@Northstone.net

One stop Real Estate & Mortgage Services Serving Sammamish, Issaquah, Redmond, Bellevue, Mercer Island and the greater Seattle area.  

Comments (9)

Lisa Marie Flenoury
"Lisa The Broker" - Playa Vista, CA
"Lisa The Broker" - Making Dreams Come True

Dan:

It is about time for a change!

Feb 20, 2010 05:53 PM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Hi Lisa, Amen, I hope it is for you too.

Feb 20, 2010 06:00 PM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

That's too bad. But on the plus side,maybe your client will listen to you next one. 

Feb 20, 2010 06:05 PM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Hi Carla, It's always a process of educating buyers and earning their trust.  Thanks for stopping by.

Feb 20, 2010 06:23 PM
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

Too bad your buyers didn't listen to your good, well-informed advice.  We are in two markets here.  Hot at the bottom, cold at the top.  Luke warm in between.

Feb 20, 2010 07:26 PM
David Saks
Memphis, TN
Broker / Industry Analyst

Wow ! Your homes are selling faster that pancakes at IHOP !

Feb 20, 2010 10:14 PM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Hi Jim, We are seeing similar patterns here.

David, This isn't the norm yet, but I'm seeing it as a positive sign.

Feb 21, 2010 06:33 AM
Janna Scharf
Keller Williams Realty Coeur d'Alene - Coeur d'Alene, ID
Coeur d'Alene Idaho Real Estate Expert

How right you are.  Right now, in the hot entry level market, it is highly competitive.  The strong offers have a shot, and the others are a long shot.  Time's running out for the tax credit, strengthen up those offers before it's too late!

Feb 21, 2010 04:08 PM
Katy Crofts
Keller Williams Realty - Olympia - Olympia, WA
Realtor - Olympia, WA

A similar thing happened to me recently also. There ARE sellers out there now (mostly banks and new construction) that are pricing their homes to sell. Some properties ARE getting multiple offers and the winning offer is usually at least the asking price. So Sellers have started "getting with the program", Buyers also need to catch up and know what is happening in the market. I'll bet they will take your advice next time and not loose out!

Feb 22, 2010 09:22 AM