One of
the biggest issues in the real estate market across the country is that
houses are being snapped up before interested buyers have a chance to
act. What should you do when the home you have fallen in love with is
listed as contingent or pending? Should you take a chance? There’s no
hard and fast rule because every home sale is different and every agent
is different. Depending on the home and the offer, a backup offer may be
welcomed or ignored.
If you see a house you love but it’s out of your price range, add it to your saved searches on Realtor.com anyway. That way you will know if the price drops and the home that was once only a dream could become a reality.
Doing The Two House Juggle Is Tougher Than Ever.
If you
have to sell your house before buying a new one, you may be at a
disadvantage. “In a hot market it’s often a deal killer to include in
your offer to buy a new home, a contingency to sell your existing home.
Sellers will simply take their pick of offers not burdened by such a
contingency,” says Lee Dworshak. Depending on your local market it may
make sense to put your existing house on the market before you begin the
hunt for a new home. An agent can advise you on whether or not this
makes sense for you based on the average time on market for homes in
your area. If your financial situation allows it, you could also rent
your current house out if it doesn’t make sense to sell currently.
Haggle With Care.
Knowing
what to offer can often be a delicate dance. Too low and may ruin the
deal forever and not seem like a serious potential buyer. Too high and
you may miss out on a chance to save some money. Sometimes even if a
house seems overpriced, you may have to walk away.“In the end there are
only a couple of things that matter to a seller. First and foremost is
what they are putting in their pocket. I knew one seller that waited
five years until the market finally caught up to his price. I never even
talked to the guy about listing, because he wanted so much. About six
or seven other agents had his home listed over that time period, but
only the last one sold the home. I just suggest making your best offer,
and move on. Oh, the second thing sellers like is an easy closing, so
make the offer as-is and get your inspections and financing tied up as
quickly as possible, “ advises David Welch, Realtor® with Re/Max 200
Realty.
Bear
in mind also that there may be other factors influencing the price that
the sellers have put on the home . There is a reason that agents often
put the words “motivated seller” in a listing description. The truth is
that not all sellers are desperate to sell immediately. “If the sellers
do not have to move, they will not be incented to take less than they
want. If the sellers have that much “into” the home, they will not want
to take less. Comps are what buyers use, but sellers always have a
reason why their house is better than the comps. One technique I find
helpful is to present a very reasonable offer with a cover letter (or in
person if possible) extolling the virtues of the home and saying how
wonderful it is but expressing concern that the appraisal process might
hamper the realization of the price. I then provide comps, excellent
evidence of financial strength, and end by saying: “We realize we may
not be the right buyer for your lovely home, but we would certainly love
to be the new owner.” That last point makes the sellers think twice
about who WOULD be the right buyer,” says Linda Walters, a Realtor® with Sage Realty.
Timing Your Life Is As Important As Timing The Market.
It’s
easy to drive yourself mad trying to predict the market. Should I buy
now, should I sell now? Is there a right time of the year to buy or
sell? The only truth is that when it is right for you, it is right for
you. Make your decisions based on your financial and personal situation
not on what you think may or may not happen. “It is very difficult to
time exactly when it is best to sell… so I always recommend to clients
and friends to sell when you know you want to sell. Traditionally,
springtime is a very popular time of year to sell one’s home, as the
weather enables potential buyers to travel and view listings on weekends
with their families. The price of the property is based on income,
location, and condition,” states Arlene Gonnella, a Realtor® in Short Hills New Jersey.
Source: Realtor.com
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