Special offer

"Then we'll start making offers"

By
Real Estate Agent with Coastal Properties Group International - Christie's International

Once upon a time,

        buyers would look and look until they found a house they loved. Then they'd make an offer on it, and usually we'd negotiate to a contract. That was then.

It's not uncommon today for buyers to look and look, and then say, "OK, after this weekend we're ready to start making offers. This generally means

  • they're not fixed on just one house;
  • home love isn't the motivating factor;
  • their offers are probably going to be low;
  • they're probably going to make offers until one of them is accepted.

Are these buyers predatory? Probably not. Most likely they're concerned about what they see in the media, concerned about protecting their equity in an uncertain housing market, and concerned about making a prudent investment. They're willing to spend time waiting for the right accepted offer.

What does this mean for sellers? It means they should think long and hard about whether they want to sell now and proceed with their next goal in life ... or wait. And often waiting means watching the market erode.

Just yesterday I had sellers ask me if a buyer who made an offer six months ago, when their home was new on the market, would still be willing to buy at that price. Sadly, no. They had bought another house in the neighborhood for $100,000 less than they offered on this one.

Posted by

Sharon Simms
CIPS CRS CLHMS CRB RSPS
Coastal Properties Group
CHRISTIE'S International Real Estate
238 Beach Drive NE
St Petersburg, FL 33701
www.ssimms.com    www.coastalpgi.com   www.christiesrealestate.com
(727) 898-2582    Sharon@SimmsTeam.com

 

Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Sharon - well it's a sign of the times here, too. There is really sense of urgency, and unfortunately some buyers have lost the homes they liked becuase they thought they had time. Even in a slower market new buyers are emerging and homes are disappearing.

Jeff

Aug 29, 2008 01:13 PM
William Johnson
Retired - La Jolla, CA
Retired

Hi Sharon, You make some interesting points. Sellers that want to sell should be as aggresive as they need be until the issue is resolved.

Buyers are using market weakness to take advantage of the current supply and demand. As well they should.

What both of them need to understand is that newspaper reteroric or misguided opinion, etc is not empirical evidence and with it as their guide , they are making failed judgement.

Aug 29, 2008 01:16 PM
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS

Jeff - quite right. There is always greater demand for particular properties.

William - real estate is SO local, even to types of condos within a single building.

Aug 29, 2008 03:38 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

"start making offers" ! LOL, yea I've seen it too. We were able to get some first time homebuyers off the fence this month by telling them the down payment assistant programs were going away and they needed to make a decision so their application could be in and approved before Sept 31st.

Aug 30, 2008 12:11 AM
Lisa Friedman
Alliance Realtors - Bedminster, NJ
Central New Jersey Real Estate

This is sad. So many people seem to want to find a 'deal' right now.  What happened to falling in love with a home?

By the way Sharon, I am happy to join you in the 100,000+ Points Club as of yesterday!!

Aug 30, 2008 10:12 AM
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS

Missy - knowing that something is going away is indeed a good motivator.

Lisa, congratulations on your 100,000 points! Too many people started looking at houses as investments like stock, rather than as home.

 

Aug 30, 2008 12:45 PM