I had the distinct pleasure of working with a referral customer this weekend. We had spent some time together at the end of last year, but with her husband involved in contracting and the slow down in the marketplace they were too nervous to own a home at this time.
This week, with rates dropping and some inventory that my office had reduced, I reached out and found their dream of home ownership had been re-ignited. We spent time together on Saturday viewing some new construction, and newly renovated homes and found something that will work for their growing family. With some builder incentives that had been discussed as options we put an offer on paper and I personnally presented the offer this morning.
Here's where it gets interesting. The builders are still thinking about it. I know them, and understand their thinking - "I SHOULD GET MORE... I REJECTED A HIGHER OFFER LAST YEAR... MAYBE I CAN JUST CALL ONE OF THE OTHER INTERESTED BUYERS..."
Bottom line, the house for various reasons, has been on the market for 18 months. This offer, while lower than previous offers is fair, and the buyers are motivated. Sometimes it pays to move on. A vacant house that sits costs, either in interest payments or opportunity costs (and there is tremendous opportunity out there). It's just ironic as they say get me any offer, what they really mean is get me any offer that I REALLY want. I will meet with them tomorrow and go over what their cost may be to wait another 2, 3 or 4 months with this home. Because 3 months from now, today's offer will be worth so much more...