When Buyers Pay OVER the Asking Price...

 In many parts of the country, neighborhoods here and subdivisions there we are seeing bidding wars....with homes getting multiple offers and over asking offers.   The wars are a result of "Thinventory" or fewer houses on the

 market than people have seen for a very

 long time.  The very powerful laws of supply and demand are at work.  In Wisconsin, the next step after getting an accepted offer, is to have an inspection by a state licensed home inspector. The top to bottom examination from the roof to the foundation includes the mechanical systems - plumbing, electrical and exterior paint, stain, material condition, driveways and sidewalks. This investment needs to also be a "healthy" one...Buyers reassured that they are getting the house worthy of the price tag they chose to inflate.

      The Buyers may choose to write to the offer that includes items that the inspector has uncovered and issues that they would like addressed from chimney cleaning and furnace tune ups to mudjacking and building code issues...the amendment is sent to the Buyers to have repairs done and lien waivers sent to them  prior to closing.  Sellers may choose to sign the amendment and agree to the repairs..substitute credit for some repairs....do some and not others or any combination thereof....with some risk.  If the Seller chooses not to repair what a Buyer may call a defect in the property....the Buyers can send a Notice of Defects and a Cancellation and Mutual Release calling the offer null and void.

     Uh Oh....Now...the over asking, faster closing offer becomes no offer at all. And....the Sellers must reveal on a revised condition report for all future buyers to see...the condition that they chose not to corrrect causing the deal to fall apart.  Agents can become defensive rather than the objective voice of reason needed in negotiations involving the inspection.

   The better thing to do is work at "keeping peace" and using the objectivity of a professional.  The Sellers got more than they asked for...the Buyers want repairs done...and the Sellers still netted more than they asked for with the original list price.  Common sense, the spirit of fair play, less greed and more equality....all come into play when crafting amendment responses.

     Sellers...do the right thing...respect the offer that exceeded your dreams...let your agent show the Selling agent and the Buyers how much you appreciate their offer.  Buyers...be realistic in your requests for repairs and replacements when you amend the offer you believed would win the war.

      If you or anyone you know is looking for experienced Realtors who know the winning ways to negotiate to begin your "Happily ever after" as a Seller or a Buyer in southeastern Wisconsin, call the Hansons, we are honored to be of service for all things real estate.

 

 

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS