Friday, February 1, 2013

Multiple Offers: What Buyers and Sellers Should Know

"I'm BAAAACK" says the Atlanta Real Estate Market.   And yes, it's back!!  We've missed you, so, Atlanta Real Estate Market!  Nowadays, unlike the bleak years between 2008-2010 (and who am I kidding.. 2011, too), we are getting MULTIPLE OFFERS on many of our listings in the Atlanta market.  Inventory levels are the lowest I've seen them in 19 years of selling real estate in Atlanta.  Combine that with CRAZY-LOW interest rates (the lowest>>>> EVER!) there is pent-up demand from buyers.  If a property looks great and is priced correctly it will sell close to, at or above the asking price in just days on the market.  Just days (it makes me giggle like a school girl).
Buyers: Listen Up!  The game has changed, and you are no longer calling the shots.  You were very obnoxious to sellers who were desperate to sell their underwater homes in 2010, and now the tables have turned.  (Don't worry, I still love you).  It is still a fantastic time to buy!  The National Association of Realtors just released the report indicating that homes are at an all time affordability level.  As home prices and interest rates dropped, median income increased.  So now is the time.  
If you are a buyer and you see a new listing on the market and it looks great and is priced as good or better than other properties you've seen, you should act immediately by making an offer.  Your agent should ask if there are other offers.  The agent does not have to tell you (and may not be allowed to tell you if the seller has instructed them not to divulge offers on the property).  The seller's agent will most likely tell you if there are offers currently on the table or expected.  If you are in competition, don't play games.  Give your best shot up front.  Don't ask for the drapes if the seller has said they aren't leaving the damn drapes.  It would be wise to offer your best price.  You MUST have a pre-approval letter from your reputable lender if you are planning on getting financing to give to the seller so they know you are a safe bet. 
If you are getting a loan and have already been PRE-APPROVED, you might consider not having a financing contingency in your offer in order to entice the seller to pick your offer.  There is some risk to this strategy (what if you were to lose your job between now and closing for example?).  If you have a property to sell, it is highly unlikely the seller will consider your offer unless your property is under contract with contingencies removed.  You would likely need to prove to the seller that your deal on your existing house is solid.  There's a lot more stuff to share with buyers, but I am running out of time.
Sellers:  A New Day has dawned.  Now don't go crazy thinking your value spiked up back to 2006 levels.  However, it is now officially a SELLER'S MARKET in the peachy city!  Praise the Lord.  We are inching out from the mud that our underwater houses left us in- and not a minute too soon.  If I  am listing your house, my goal is to sell it in UNDER 30 DAYS.   The reason is obvious (to me), but let's review: the less time on the market, the higher your potential net on the sale.  Buyer's don't typically go into a feeding frenzy over your stale listing that's been on the market for 90+ days.  But if your house is staged well, maintained well, in a great neighborhood and priced just slightly above the neighborhood's most recent comps, statistically, it will sell for 98.7% of the list price in 23 days on the market.  And maybe it will sell for more than asking price with no loan contingency. (More school girl giggling/squealing). 
Next time, I will talk more about some of the finer points of handling multiple offers.  I have to go now, I am getting my 3rd offer on my newest listing that I listed 2 days ago- I kid you not.  Wish us luck!

1 comment:

  1. Great Post! It's very nice to read this info from someone that actually knows what they are talking about.