Some deals work and some deals don't. That's true in just about every aspect of life including deals with the devil:)
The fall of the real estate market is a not a surprise to most people. Prices are down. Inventory is up. An extraordinary amount of homes are vacant. Tons of foreclosures and short sales on the market with more to come, according to some experts.
So when you get an offer on your home, you really need to take it seriously. Let me first say that I certainly do not think that every offer is worth consideration because some are just beyond ridiculous. But, I think the vast majority are worth consideration in this market.
Before you turn down what you think is a ridiculous offer here are some things to consider:
Is the offer really that far off the mark when you consider the comparable sales in the neighborhood?
Are all the terms (with the exception of price) terms you can live with? acceptable possession dates? or better yet some extra time in the house after title transfer? did the buyers ask for the sun, moon, and stars or just what was offered in the MLS? do the buyers have a decent down payment and a pre-approval from a reputable lender? If the answer to the above questions is yes then the offer should get serious consideration.
Here in Cleveland Ohio it has not been uncommon to see snow in October, although we have been lucky so far, but I'd have to bet there will be some in the next few weeks.
Is the home you're selling vacant? Yes? then add this to the mix.
You now have to turn on the heat or winterize the plumbing to help prevent the pipes from bursting. As an agent who has shown many homes during the winter months, I can tell you it's quite unpleasant to show a freezing cold home and the buyers don't like it that much either, so I would probably tell you to keep the heat on, but is another expense.
Who will take care of the snow plowing? Again, from my experience, buyers and their agents do not appreciate trudging through one foot of snow to get to the front door of that freezing cold home. I have had buyers simply say "next."
Now in case you think that I don't follow my own advice I can tell you this. I have purchased 3 homes and sold 2 and with the 2 I sold I was smart about it. The first one I sold was in 1990 when the market was great. FHA and the city inspectors made me take out half my concrete driveway. I asked the other agent if the buyer was willing to take on the repair and she said yes but for a price, of course. I promptly reduced the price by $2000 and went on my merry way. My sites were set on the home I already purchased and which I was so excited about. We pretty much broke even on that sale but I could see that it had value to me and that it was a stepping stone to my next move. And by the way, even though we broke even, I still felt I was ahead because I had my tax write off for all those years.
My second sale was a bit easier but my motivation was strong. We were building a home and even though I worked for the builder, the market was good and he would not accept a house sale contingency. When I got an offer that was 95% of my list price, I signed on the dotted line.
I realize that many, many people have lost the equity in their homes and there have been many foreclosures, but if you are one of the lucky ones that have control over selling your own home, then be smart about it and look at ALL the terms of the offer.
The longer you hang onto that house, the more the monthly expenses add up...taxes, utilities, unexpected repairs, so think long and hard before you reject an offer.
It may be a very long time before another one comes along.
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