Clay Madisen

Hello Merideth,

We are currently in an interesting market. Just as when the market was booming, here to, in a distressed market the competition is tough. When buyers saw the market increasing at a never seen before rate they were submitting offers on properties so fast that it was difficult to get our clients offers accepted because of the number of people wanting to buy and it was a sellers market. Now the worm has turned and many buyers that were priced out of the market before are out looking for a good deal. You are not alone. If you thought this property was a good deal so did many others. The result is that a "GOOD DEAL" property will have many offers and many interested buyers. Some are investors, some are homebuyers, and some are speculators. From the position of the Seller it's all about how much and when will it close. Your job, should you chose to accept it, is to make yourself stand out from the crowd. They way to do that is to offer the strongest price, the fewest number of contingencies, and the shortest closing time. Do that and you will most likely get your offer will be accepted.

As professionals it is required by law that we submit all offers. Even the offers that are frivolous have to be presented to the seller unless we are instructed otherwise by the Seller. In this market I explain to my clients that it is more about value than about cost. If a property sounds like a good deal then many others will probably think the same. To compete against all the other "GOOD DEAL seekers you'll have to ask yourself about value. What is the property worth to you? If the property is listed at $150,000 and there are many buyers then it was most likely listed that way to generate offers. To you that means is that you are going to have to come in strong with a very clean offer in order to compete. The sellers whether they are banks or homeowners will pick the offer that brings them the highest net, has the fewest contingencies, and will close the fastest. Keeping all of this in mind, if you find a property that has right value to you, write the highest and best offer you can make comfortably. Don't offer more than it is worth but at the same time don't try to get the deal of the century right now because we are not in that kind of market. Remember, all things in their own time. Have patience. Play the game according to what the market calls for. If you really want a property then buy it according to what you can afford. If you don’t get that one another will show up soon enough.

Remember, the Seller is in control right now. And currently many of the Sellers decisions are subject to the approval of the banks. Keep at it, do your research, and ask lot's of questions. The only one that can steal a property from you is another buyer that is offering more money with fewer contingencies, and a shorter closing time. Have your financing ready, get a letter of approval from your lender, have proof of funds available for your down payment and when the right property comes along make a good strong offer. If the seller doesn’t accept it then move on to the next one. Buying a home is a process, not an event. It takes time, patience, and research. Good luck to you.

Clay - Sat Apr 25, 2009