I recently wrote a second offer for my buyers that was of course, a low ball offer. The sellers gave a counter offer which I presented to my buyers. My buyers did not even counter the counter offer back. I called Don, the listing agent and told him, "Sorry, no deal", to which he responded, "You know, buyers right now are like Mc Donald's". I asked him what he meant by that, and he said, "have it your way". I quickly corrected him with "Isn't that the tag line for Burger King?" We both laughed!
After I hung up with Don, I can't help but analyze his analogy; how the same tag line resonates with today's buyers, how they want it their way. They now have choices, choices that were not all there, in the early 2000's.
Buyers are not jumping over the fence considering these golden opportunities:
LOCATION- Too much inventory- in my area of Castro Valley, Hayward, San Leandro, San Lorenzo (Alameda County), currently per our MLS stats there are 1,943 active listings, price range from $195,000 to $4,100,000, with an average of $571,822, so take your pick!
FINANCING- Still very low rates. Loan availability to qualified buyers: government backed loans, city and county first time home buyer assistance programs, 100% financing, seller financing...
PRICE AND TERMS: A buyer can make a lower than asking price and still get credit towards closing costs.
QUALITY AND CONDITION: Buyers don't have to buy "as-is". Most sellers provide termite clearance; there is room to negotiate on other repairs. Some homes are move-in ready. Vacant homes are staged to make it appealing to buyers.
NO OVERBIDDING. Except for few areas in the Bay Area and for truly exceptional homes, there are few multiple offers. The same house you looked and liked yesterday at the open house will still be there tomorrow. You have time to think about it. There is less buyer competition.
OFFER CONTINGENT ON SELLING EXISTING HOME. It sure was not acceptable few years ago, today, it is possible.
These are only few of "have it your way- buyer ways". The pool of buyers who need to buy right now are buying homes, they are not buying houses. Like my buyers, they finally found a home, they are in escrow right now, and YES, they had it "almost" their way.
(I don't mean to use Mc Donald's and Burger King's tag line, but I have to mention the names as they came up in our conversation, my apologies). If you have clients who want to move back to the Bay Area, please be kind to refer them to me. Your referrals are warmly accepted.