Home Buyers to Sellers in Connecticut- That Ship Has Sailed
October 27th, 2008 categories: Central Connecticut News & Information, Home Buyers, Home Sellers
Home buyers are communicating to home sellers loudly and clearly - don’t accept my offer and I will move on. And when you finally adjust your price to where it should be or should have been, I will have found another home I like just as much and a seller who is willing to work with me.
Case in point: A client put in an offer earlier this year on a home in the Farmington Valley. The offer was 13% below the asking price but we had solid comparables to back up our offer. The house was overpriced by more than 10%.
After some negotiation, the buyer was actually willing to overpay for the property slightly but the seller was unwilling to come down on the price by more than $10,000. Another $3,000 off the price and they would have sealed the deal.
My buyer client walked. Or, in keeping with my theme, sailed their boat to a different port.
Flash forward 4 weeks. I get a call from the listing agent who tells me that the sellers have reduced their price by $10,000. They will likely end up selling it for less than what my buyer was willing to pay for it, if they sell at all.
Unfortunately, her clients missed the boat (sorry, I can’t help myself). My client already put in an offer on another property and is closing soon.
The seller made two classic mistakes: they overpriced the house and were unwilling to negotiate with a real buyer.
Overpricing
A home seller’s best opportunity to sell is within the first three weeks a home is listed. The best offers by the most qualified buyers typically come at this point.
After that, you most likely have to play catch up with the market. In this case, we are in a slightly declining market (we are not Florida or California) and sellers, with their agent’s advice, should anticipate the market.
Furthermore, you risk other homes selling for less, driving down the value of your home, or worsening economic or credit problems.
The example I used above is still overpriced by at least $7,000. The sellers haven’t learned their lesson yet.
Unwilling to Negotiate With Real Buyers
A real buyer comes to a seller with a decent deposit, some money down (preferably) and a mortgage pre-approval (even better, a Buyer’s Edge Approval from McCue Mortgage which is only subject to appraisal and a sales contract). They are actually qualified and want to buy your house! What a combination.
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