Why can I not get my offer accepted?
Wow - in two months the market has DRAMATICALLY shifted again and it's time to re-write this blog of only 2 months ago. Things shift and change so quickly AND dramatically that even blogs are outdated within weeks! Please see the dramatic changes highlighted below:
It's amazing how many offers are going in on homes these days. I have found that since January 1, that there are anywhere from 3-18 offers 15-37 offers on every single new listing out there. Buyers are now having to offer more than full price and until buyers have had several offers rejected, they don't believe us when we say, "A full price offer won't get you this home". "An offer $20,000 over asking won't get you this home!" Does that sound familiar?
As a team leader, we brainstorm ideas among a large number of agents, and this is what we have come up with so far:
1) Getting an offer submitted to the listing agent timely is utmost important. Buyers need to be prepared (with Pre-qualification form or Proof of Funds in hand) to write an offer within hours after a home is listed on the market. You snooze you lose! Offers are coming in by the droves in Arizona and you must have an agent that can act quickly, precisely and knowledgeably.
2) A cash offer almost always trumps a financed offer, and a conventional financed offer almost always trumps a VA or FHA financed offer. Of course, the dollar amount of all those offers have to be weighed against each other, but cash seems to win every time - even if lower.
3 ) Seller Concessions -- The new Arizona Real Estate Contract has a paragraph for seller concessions - which invites buyers to ask for seller concessions. Even a month ago, it was customary that the seller pay most if not all of the buyer's closing costs, home warranty (on regular sales), appraisals, inspections, transfer fees and up to a year of prepaid property taxes, homeowners insurance & HOA fees, but since January 1, 2012, this paragraph almost always has to be left blank - meaning that the buyer will pay for these costs themselves. Buyers may try to offer more so they can still ask for seller concessions, but the sellers realize that the appraisal probably won't come in higher to cover these costs so the seller more often than not these days, chooses an offer that does not include seller concessions.
4) The days of asking for repairs is almost over. In Arizona, a contract with an "AS IS" addendum is almost as common as the contract itself. I've sold far more homes with an AS IS addendum than not and it doesn't even have to be a bank owned or short sale! AS IS is the new norm in Arizona.
5) Closing dates are important. Short sales are dictated by the short sale addendum (30 days after written approval), but even then, the buyers who have cash are asked to close immediately following the inspection period. Sellers (especially fix and flip sellers) want to close as soon as possible so they can move on to the next project.
6) No Contingencies. If you are a buyer looking to purchase something, but you have a contingency ie., you must rent or sell your home first, forget it! No seller in his/her right mind would sign a contract with contingencies when there are so many other buyers w/o contingencies standing in line. Buyers, a word of advise.... get your ducks in a row and then make offers. Otherwise you are wasting every ones time - especially yours.
7) Use a realtor who is in the trenches. The market changes daily, and if you are using a family friend or relative who is not accustomed to the every day changing market, you will not be a lucky buyer (or seller). There is too much to know and with the market shifting directions daily, you cannot afford to make a mistake choosing a realtor.
On another note, the last few weeks have been very frustrating, to say the least, for you the buyer and for us the agents! Please buyers, don't keep changing realtors thinking that because you are not getting an offer accepted it is because of your realtor. You will know after 1-2 deals if your realtor is for real or not. You will know if it is from lack of ability or if it's simply a frustrating market with lots of buyers and low inventory. My first piece of advise is: If your realtor is in the trenches every day, stick with her or him! They see what is happening far quicker than those who are passive realtors.
Also as a team leader, I have a lot of agents that I can re-assign clients (you) to if you feel like your realtor is not getting the job done. If we work as a team, we don't lose our commissions entirely. This is a tough business and we need loyalty the same way you need loyalty in your businesses! Maybe we should start charging by the hour instead of by the transaction! Do you realize that when we are working exclusively for you, we are not able to feed our families when you switch? Please buyers, talk to us! Let's strategize together!
Buyers, do you not see the frustration on our faces when you chose to switch realtors? When out of a whim, with no discussion with us, you change and we get nothing. Zero. Zilch. After being absolutely exhausted from working for YOU, that's just not fair.
Please consider this: BUYERS, before you consider switching realtors, ask yourselves, "If I were a realtor out there busting my _____ to find homes, drive everywhere using my gas and car, calling agents non-stop, writing offer after offer after offer, talking strategy, begging, staying up late every night trying to get deals to work and so forth, would I like it if my clients went somewhere else where they thought the grass was greener - especially knowing that I don't get paid until the deal closes?!!!" The answer is a flat out NO!!! NO WAY!!! I'm sure you would feel like we do: used and abused! Not counting we get zero dollars for our efforts and we wonder where we are going to find money or stamina to do it again.
I've also found buyers calling me for advise, going on my websites (that I spend thousands of dollars on) to gather information and then using this knowlege & information to feed to their other agents and we end up getting nothing!
I'M BEGGING YOU... PLEASE BE LOYAL. PLEASE BE PATIENT. PLEASE TALK TO US! WE ARE GREAT AGENTS WITH ONE MISSION - TO SERVE YOU AND TREAT YOU THE WAY YOU WANT TO BE TREATED & SERVED!
As a team leader, I have other strategies available as well TO GET YOUR OFFERS ACCEPTED so please give me a call directly... 480-415-7616 or 801-251-6416.
Shanna Day, Mega Team Leader/Rainmaker - Salt Lake City, Park City, & Phoenix Metro Areas
Keller Williams Realty East Valley (AZ) http://www.FindAZhomesFAST.com 480-415-7616
Keller Williams Salt Lake City (UT) http://www.FindUThomesFAST.com 801-251-6416
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