Considering today’s market, one cannot rely on the methods
that were effective before. This is a
living, breathing, and ever changing industry, especially in its recovery
stages. So beware of your parents,’ or
friends’ advice if they haven’t sold or bought anything in the last 2 years to
avoid these three
main real estate misconceptions.
The 1st misconception
is that spring is the best time to put your house on the market or go
looking to purchase. If you are married
and have children that are in school, then this may be true. Moving is best done in the summer while the
kids are out of school so that there is no disruption in their education and
you have nice weather.
The truth is that most buyers right now are single. The season has little to do with their
methods of reasoning. It’s about when a
buyer can find the best deal. If an
incredible opportunity comes along 2 days before a national holiday and they
are a serious buyer, well they are likely going to make an offer. Take advantage of the impulse buyers and there
are more today than ever.
fallacy is “never offer the full
asking price.” Have you seen the real estate market
lately? If not, then this good sounding
advice is out of date at the present time.
More and more sellers are learning that they cannot
over-price their homes to encourage multiple offers. For properties that are priced right in
multiple areas there are multiple interested buyers and this can result in multiple
offers. It is competitive right now and
that is made more difficult by the amount of cash investors.
As a seller, it’s best to price your property in the
movement of the market as there is more likelihood that there could be multiple
As a buyer, unless you don’t expect a competitive situation,
you are better off offering a fair price instead “low – balling,” and the
seller might actually accept your contract over the “low-baller.”
Last but not least, number
3; Cash is King! In the past, cash
buyers got used to being able to offer lower than the asking price and it being
accepted against another offer with financing.
This is still the case for a number of properties with a seller who is
leery of buyer financing. Even the other
buyer making the finance offer would assume they didn’t stand a chance against
Hold on to your hat there partner, that may not work
anymore! The harsh reality now is, ahem…
the seller may actually choose a financed offer with a 20% down payment and
pre-approval from a lender that offers the full asking price. In fact, some agents may even go as far as
setting up a conference with the pre-approved lender and the seller, as well as
provide proof of their buyer’s income, assets and credit report. Now that’s an agent committed on getting the
seller the highest price.
So what have we learned?
In a new market you must be aware of what is working today that is
change from prior market trends and guidance, whether buying or selling. Find a real estate agent that is local and
has a track record of transactions where you are looking to buy or where you’re
selling. You want someone who has their
ear to the ground, who has integrity and works hard on your behalf.
Thank you, we'll be in touch!