The Morning After.
We've all heard this phrase at some point in our lives; usually referring to a hang-over.... Today, the once kooky phrase has crept into the world of real estate and cozied up beside Buyer’s regret and Seller’s shock.
Here are a few highlights from two true stories that I recently experienced.
It’s late (10:30 pm) on Tuesday evening; I’m sitting with my clients at their dining room table reviewing an offer while the buyers and their agent are waiting outside in the driveway. The offer was straight forward but with a low purchase price and an extremely fast (3 week) closing.
My clients were selling their house in order to find something a little bigger...we had yet to start looking, and this fast closing would not be favourable for us but, I suggested we play hard ball anyway and sign the offer back (counter-offer) at full list price.
Times atickin’, it’s now 11:45 pm and we’re waiting on their response....finally, an hour later and after a few back and forth sessions on some minor details we have an accord. Its 1:10 am and I pack up my briefcase. I turn and mention to my clients that we just sold their house for the highest value ever on the street.
Second story, an investor client calls and tells me he’s found a “cute” little place that he and his wife have fallen in love with...a recreation property, a weekend place...a romantic get-a-way. We view it, and I investigate this “cute” property...indeed it is, and it’s in a very very desirable area.
I call the listing broker to register an offer...oh no, there is already an offer registered and they are presenting it to the vendors at 3:00 pm. I explain the multiple offer situation to my clients and draft up another, more aggressive offer, suggesting at least a ‘full list’ purchase price.... It’s now 2:20 pm and my client really wants this property but, he feels that the property is slightly over priced... even-though I’ve shown him the comparables...it’s priced right.
At 2:30 they decide to go ahead with a full list-price offer. I begin typing and just hit ‘print’ ...”WAIT WAIT”, he says, “I’ve changed my mind, I don’t want to go in at full price, let’s knock it down a few thousand...I know they’ll accept”.
Well....they didn’t. The other buyers won the contest even with conditions...which means they offered more money. My buyers are heart-broken; later on that day I received three emails...each one more regretful then the previous. If the other buyers fail to satisfy their conditions, I will have one very happy client.
The moral of the story? Think hard about your decisions. Sellers, be prepared to move out early to get the best price. Buyers, go in with your very best offer - if you lose out you won’t have any regrets.
In conclusion, my sellers are very happy now...we did find their dream home, and those vendors needed out quickly. As for my buyer clients...I only said ‘I told you so’ once.
So, the next time you’re sitting at the negotiating table remember the phrase
The Morning After The Night Before. Visit my wesite for more exciting stories and featured listings.