Just Sold in Manassas $11,000 Over List Price
When I first introduced 9400 Abingdon Court to the market, I have to admit that I was a bit nervous. There was no doubt we were in a seller's market, but I was dealing with a forty-nine year old townhouse that was very nicely updated, but there weren't too many comps out there to justify the price. Yet, the lack of supply was the real reason that properties were selling higher and higher. So, I looked for competition. There was none. Initially thinking $275,000 was a fair list price, the sellers and I decided to roll the dice on $285,000. Whoa! We did not expect what happened next.
Hitting the market on June 25th the showing activity on the townhouse was frenzied. There were over forty showings in five days. That was when, with thirteen offers in hand, the sellers instructed me to pull the listing temporarily off the market until we could go through everything we had in hand.
What is amazing to me is that, knowing they are going into an intense multiple offer situation, buyer agents don't do a better job of advising their clients about what the phrase "highest and best offer" means. We had plenty of full price offers with closing cost help requests, and we also had plenty of offers above $300,000 with no closing cost help requests. You have to be as lean in your asks of sellers as possible in these situations. Yet making rejection calls, I heard over and over that their buyers could have done better. Really? Best time to do that is in the initial offer. You usually don't get a chance to renegotiate in a multiple offer situation.
Getting a glimpse into the mind of the sellers, two offers stood out. One at $300,000 with a $10,000 earnest money deposit and another at $301,000 with a $90,000 down payment. Just about every other term was identical. When the lender for the second offer with the out of the ordinary down payment did not return my calls, the sellers went with the first offer. They decided, however, after the lender returned my call about that large down payment, to hold the second offer as a back up. Just goes to show how intensely important it is to work with a lender who returns calls promptly.
Well, as it turns out, the first offer had a home inspection that instilled panic into the buyer. They didn't ask for repairs, just voided the contract, which is actually how their contingency was written. Nonetheless, when something big enough comes up, sellers are generally willing to work with buyers because it is likely to come up again. Nope. Buyer One was gone and stepping into primary position was Buyer Two.
The inspection report from the first deal was shared at Buyer Two's request and more panic insued. It was over an issue that had been present in the home for many years and was considered normal aging when the sellers had their inspection. So the seller engaged a top notch contractor to investigate what he already knew to be nothing major. Sure enough, the contractor did a ton of investigating and came up with the conclusion there was nothing to worry about. The solution was to wait and see if the issue ever got worse. Buyer Two didn't like that. So the sellers were willing to give a price reduction in the amount it would cost to implement the first level solution IF it were to become a problem while he owned the home. After some common sense conversation, he agreed to move on, buying the home for $5,000 less than he had originally agreed. The sellers still got more than they would have if they put it back on the market if TWO deals had fallen through on inspection. Even though there was nothing wrong, the connotation was not going to be good to buyers and their agents. Perception is everything.
Appraisal went off without a hitch. Then again, we knew from Buyer One it wasn't going to be a problem anyway. The home had appraised at $300,000 no problem in that deal.
Yesterday, August 7th (2020) this home went to settlement for $296,000. That's $11,000 more than the already high list price we hit the market with in late June. Clearly, the Manassas real estate marekt is a seller's market for sure. Buyers out there in it need to bring their A game when making offers to get them accepted.
Want to take advantage of this extreme buyer demand and list your Manassas townhouse? Give me a call and let's get going. There is still an insane amount of buyer activity.