Seller’s Market...But Are Sellers Able To Maintain The Upper Hand?
Let’s face it. In most price categories in Winnetka, Glencoe, Wilmette and Kenilworth, it seems to be a seller’s market. What that means is that for well priced listings, the market times are very short and sellers have some power on pricing and other terms in the sale of their properties.
Frequently, we are seeing multiple offers for desirable properties.
This has been further compounded by the extremely small inventories of home for sale.
However, there is an interesting phenomena that is taking place all too often.
In their eagerness to purchase the home, many buyers are stepping up quickly and either paying a premium price or agreeing to terms that they might not prefer (i.e. a much later closing date).
Often these buyers, either on their own accord or with the encouragement of their agent, are doing this with the idea that they can get out of the contract at any time until the contingencies have been met.
Whether due to buyer’s remorse or just viewing the transaction through a longer window, some of these buyers are backing out of these transactions.
The implications for sellers are very interesting. Typically in multiple offer situations, sellers will choose the highest offer even if it does not appear to have the greatest likelihood of getting to the closing table. While it may seem irrational, a property that returns to the market after being “under contract”, no matter what the circumstances were, is often viewed as “damaged goods” and the seller rarely has the same negotiating power that they had prior to the broken contract.
Sellers…..Please evaluate all offers on many levels to balance the greatest amount of dollars with the highest probability of closing.
The implication for buyers is also interesting. Do not make an offer you cannot live with. If you do and the seller accepts, the deal is doomed for failure. Do not become a “serial deal breaker”. If you think that your reputation will not get out there in the real estate world, you’re dead wrong. If any listing agent knows that you have already backed out of one or more deals, it is their responsibility to share that info with the seller they are representing if you make an offer on their property.
Whether it is deserved or not, agents may also get a reputation for representing “deal breakers”.
All of these scenarios present a solid case that buyers and sellers on the North Shore need the representation of responsible, knowledgeable local Realtors.