Seller's Market Equals
Multiple Offer Situations Equals
Hours Wasted
What happens when a large number of people want to buy homes and only a small number of people offer homes for sale? A Seller's Market is born. A Seller's Market Equals Multiple Offer Situations and results in hours of lost time for everyone involved.
Time is lost when a Seller's Market Equals Multiple Offer Situations effects everyone along the home-buying vertical. The Buyer spends time refining the choice. The Buyer's Agent spends time writing up the offer. The Buyer spends time and money on an inspection. The Buyer spends money for an Appraisal. The Buyer's Mortgage Lender spends time preparing the Loan Approval document.
Lately, in Atlanta Buckhead Midtown Westside, the Seller's Market Equals Multiple Offer Situations daily. Last week, our Clients participated in three separate offers that went to multiple. Let's look at other ramifications besides hours wasted.
1. Sellers may be overwhelmed by the quantity of offers to review. The highest price offered may not always be the best choice. The home was listed at $300,000. They had eleven offers in four days.
In one of the Seller's Market Equals Multiple Offer Situations we encountered last week, the Seller took the highest offer. Our Client offered List Price for a cash purchase. The accepted offer was $325,000 with a Mortgage. Then the Buyer wasn't able to get the loan. At that point, the Listing Agents called to say they would entertain our offer as a back-up if we would re-submit. Unfortunately for the Seller, our Client had moved on to another property.
2. The rush to win a multiple offer situation may lead to inflated prices. In another of our situations, the offer amount exceeded the possible loan amount. Yes, we are in a Seller's Market Equals Multiple Offer Situations time but the Appraisers and Underwriters may not agree with the prices the Seller and Buyer agreed to finalize the contract.
3. The lack of inventory may lead to inflated Listing Prices. Since there aren't enough homes available, the Sellers may pressure the Listing Agent to start at an inflated Listing Price. It may look good on paper but be a disastrous decision. (POST --- Test with Higher Price?)
Sticking to Best Practices is the best way to survive in a Seller's Market Equals Multiple Offer Situations era. That means submitting properly constructed contracts EVERY TIME. Often the little details are where a deal can get very difficult.
At Atlanta Homes ODAT Realty, we plod along using Best Practices. Tonight we received a normal response to an offer. What a pleasure! Worth all the time spent to provide a complete contract from the beginning! Ours was accepted because the Seller liked getting everything in the offer at one time. Remains to be seen if we agree on a final price... Remains to be seen if the Appraisal will agree with that price as well - LOL!!!
All the best -
Lynn
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