In the last week along the Main Line I have made an offer on a home for a client, and visited two other listings where I learned that each had multiple offers. These were different townships and different price points. Buyers are out and active. But, what I am noticing from homes that are settling is that buyers are not offering full price, even where multiple offers are happening.
Sellers have definitely got a better handle for the market and are pricing their homes accordingly, but buyers are very wary still of making full price offers and are holding firm on price offers, preferring to walk away and wait for something else than be forced to pay full asking price in this market.
So if you want that coveted SOLD sign in the front yard, be willing to negotiate, however well priced your home is in your opinion. We have seen sellers time and time again refuse to negotiate a first offer only to accept something much less later in the life of the listing. If buyers are making an offer, they are serious about your home, if multiple offers come in and all are below asking, the market is telling you something that you need to hear. Even if you get a full price offer the home still needs to appraise for that price.
Whereas buyers are looking at multiple properties and comparing attributes of each and considering prices of these homes, sellers often after that initial discussion of listing price, don't want to see what else is on the market. But as a seller you should be looking at all homes, even if on line, that come on the market and are competition for your listing. You need to be price comparable, and also to be the home that offers the best value at this time.
Whilst the economy is improving, many feel it is still anemic, and are concerned if it will continue, so don't waste that chance of making the sale to hold out for an extra $5-10,000.
As I explain to many buyers and sellers there is far more to an offer than just price, all the terms of the offer are important, settlement date, inspections, time for inspections, mortgage contingencies, type of mortgage, amount being put down and buyers financial position to name just a few. For example, if you have a home being built and it will be ready in August, you decide to put your current home on the market now for sale as it might take some time to find a buyer. But in the first week of the listing, the home is priced at $390,000, even if a buyer offers you cash and willing to pay $450,000 but with just two weeks to settlement, you most likely will say no and negotiate a different set of terms because your new home will not be ready. So, it is not always about price. There are the inconveniences of moving that also need to be considered and factored into any offer.
Good luck, the market is improving, especially along the Main Line.
Comments(2)