As a Gainesville-Bristow Realtor®, I haven't had any time to reflect on life's mysteries these days. The real estate market has been keeping me quite busy. I work representing both buyers and sellers in the area, though representing both sides in the same transaction is out of my comfort zone. Dual agency is not something I feel is fair to the buyer or seller. But I digress....
If I ever wondered, "What's a girl got to do to get noticed around here?" the answer had to be:
Find a seller to list their well kept townhouse in Bristow's Braemar at $250,000.
There were twelve offers on this listing in just six days! My phone was ringing off the hook. And in putting these offers on a spread sheet for my seller, I had to wonder what was going to flip his switch. Since he was not a Short Sale, and stood to make money, I figured the takeaway in dollars and cents was going to be IT. However, as a Realtor®. I know that there is more to an offer than the sales price.
The Gainesville-Bristow area has been experiencing some growing pains. Appraisers are not budging from the neighborhood comps and are NOT giving any increase for buyer demand. So my gut was telling me that the sales prices on many of these twelve offers were pie in the sky. A phone call to another agent in a transaction in the neighborhood confirmed that suspicion. Her buyer had offered above significantly above list price on an almost exact townhouse, but the appraisal came in just as far BELOW the list price.
Out of those twelve offers, there were a few that were below what I thought the Seller could get in appraised value. He pitched those. We discussed that, in the event of a low appraisal, it was unlikely a buyer would give up any of the closing cost assistance my seller had previously agreed to give. So a smart option was forgoing any buyer that needing closing help.
What it boiled down to for my Seller was down payment. The higher the down payment, the more likely the buyer would be to make up the difference if there was a low appraisal. There were two offers with high down payments, and my Seller chose the one with the lender whose mortgage company they knew.
It wasn't the highest sales price that won, but the most likely to get the highest NET for the Seller given the market comparables. And the most likely to go to settlement.