While inventory is slim pickings in Mililani Town, Ewa, Kapolei or ANY market on Oahu, there are multiple offers being had by every listing. The silliness is that the listing agents who are suggesting price ranges for any one property may be listing with prices in the norm of a slowly rising market, but then there are buyer’s agents who are suggesting to their buyers to put in offers 30k or more so that their contracts are accepted.
WHY DO THIS WHEN YOU KNOW IT MAY NOT APPRAISE?
We’re seeing this scenario with many VA buyers who have no money down and sellers 
obviously picking the contracts with 20% or more down payment. The problem is that no matter what, all transactions are going to rely on all parties being REALISTIC. It may or may not appraise, it may or may not be true that those with money down may not remain in contract when they see a ‘better’ property.
NO MATTER IF VA BUYER OR CASH DOWN, IT’S ALL THE SAME MONEY!
It’s a game of chance! We try to do the best we can in an ever changing market and though there are unrealistic offers coming in on any one property, we do the best we can with advice to our sellers. Yes, they most likely will pick the highest and best offer, but all the while knowing they listed the property at a reasonable price. WHY NOT SEE IF THEY CAN GET MORE? On the other hand, no matter what, it’s all the same money!
BE REALISTIC WHEN THE APPRAISAL COMES IN.
Sellers: Should the appraisal come in lower, remember what you listed the property for. I watched a property fall out of contract in the same area while my listing went through without a hitch. WHY? My sellers knew (with my advice) that the appraisal would come in close to what they listed it for. Yes, they picked the best looking offer, and yes, the buyer ended up coming in with XX cash to meet the seller half way, but the bottom line is that the agents worked together for their clients and it was a win/win situation anyway. On the other hand, a seller who does not listen to their agent that the appraisal will NOT meet the offering price will stand a chance of time lost.
Buyers: Ask your agent for comps and don’t be unrealistic with your offers. There are
no excuses to hold up a property for sale when you know that it will not appraise. The last sold property in the area, complex, sq/ft interior, condition, upgrades and so forth will tell the biggest story in your comparable properties to the subject property. There could be room for negotiations at the time of appraisal report, but if you don’t have the money to at least meet the seller half way then please don’t be unrealistic in hopes that the seller will come down 50k in price. (I think at that point your offer will not be accepted anyway)
The rest is up to us real estate agents and brokers.
The best way we can represent our clients is to be up front and honest. NO IFS ANDS OR BUTS! Don’t take a listing that will be severely overpriced or at the very least let your seller know that all will look at pricing 2 weeks down the road. THE PUBLIC WILL HAVE THE LAST SAY. If there are no showings or offers in a LOW INVENTORY MARKET, the public tells the truth. The worst thing we can do is make a liar out of ourselves by promising more than what is reasonable for a list price.
The same goes for buyer’s agents. Don’t promise that they will get their offer accepted if they offer 25-50k over list price and comps show that it won’t happen. Everyone’s lives are on hold and all time lost when the appraisal will tell the whole story on pricing for the subject property. The buyer will go elsewhere to get the proper representation. Don’t be lazy….do the work involved for those that are VA clients with no money down. It’s going to be extra work, but well worth it when your clients acknowledges that you are a hard worker and did the job right.
Rewards will always come from within.
Being a slime bucket does NOT ever pay off.
Being up front and honest will.
…And you will always sleep well at night!
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