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Buyer Wins Big

By
Real Estate Agent with BAIRD & WARNER, NAPERVILLE

I thought that I'd share my latest experience with a relocating buyer.

We've been working together since April. They knew that they wanted Naperville but just weren't too sure on which sub-division. The decision was made by their son's after-school sports events. They decided that they wanted to be close to his school and activities, even though it meant a longer commute for Dad.

So, we looked at more homes. The wife and I would go out during the week and then report back our findings.

On one of these trips we looked at a vacant, relocation home. And, many of the homes on the market are vacant! The wife liked the location...on a cul-de-sac so her son could play; the husband liked the big yard as he gardens.

The original listing price was right around $550,000. I worked out comps and gave them to the buyers. They studied listings in the area as well as in the sub-division. And, then they called me and said that they wanted to make an offer.

OK...I'm ready! I meet with them and the husband says: "Here's where we're starting our offer: $450,000." Wow. A serious buyer starting $100,000 below the listing price.

And, yes, he did come up and the seller did come down. But, neither the agent, the seller or relo laughed at our offer. That tells me that times have changed. The fact that they wanted to work with this offer...to put it together contrasts with the market we had in 2006, where an offer like this would have been refused.

So, is this a good time to buy? YES! If your credit is good...above 740 is best...and you have down payment funds. Rates are reasonable. Inventory is aging.

And, you can get a really good buy. NOW! I suspect by next Spring many of these "deals" will be history.

Show All Comments Sort:
Ann Cummings
RE/MAX Shoreline - NH and Maine - Portsmouth, NH
Portsmouth NH Real Estate Preferrable Agent

Hi Eileen - congrats on that sale.  I'm finding the same thing here in my area, and like you, I suspect those 'deals' will be gone before too long.  Actually in some of the towns in the area I service, those deals have already disappeared.

Ann

Sep 27, 2008 11:30 AM
Brett Tousley
Keller Williams Realty - Richland, WA
Tri Cities Real Estate | (509) 420-0013

Eileen, Love helping buyers purchase relos!  Motivated sellers and good discounts for the buyer most often.  Not to mention the relo companies want these homes off the books and are very responsive.

Completely agree, if you are a buyer with good credit it's a great time to buy.  The best way to take advantage of a buyer's market is to....(Drumroll please).....Buy! 

Sep 29, 2008 07:09 AM
James Wexler
wexzilla.com - Scottsdale, AZ

Eileen

Now is certainly an excellent time to buy.  Even people normally apathetic about real estate want to get in the game.  The problem is that people are very low on cash for obvious reasons.  This combined with lenders demanding larger downpayments to lower their risk, also for obvious reasons, is making transactions difficult.  Hopefully the liquidity that the government is trying to create will trickle down.

Oct 11, 2008 08:46 AM
Carole Cohen
Howard Hanna Cleveland City Office - Cleveland, OH
Realtor, ePRO

Hi there Ms Naperville! All in all I think the situation is better when everyone, buyers and sellers, see the need to be realistic.  I wish that were true in boom markets too! Maybe we can keep drilling this point home!  Happy Halloween.

Oct 31, 2008 01:54 PM
Carole Cohen
Howard Hanna Cleveland City Office - Cleveland, OH
Realtor, ePRO

I turn down a lot more listings than I used to and mostly it's because they want to list way way too high and won't let me set a schedule to reduce the price. I've taken a couple of those but not many. I didn't know abou the zillow study thanks

Oct 31, 2008 02:58 PM