I have no problem with people trying to get the most money for their home. I just think that it would make sense for them to remember the old saying, "a bird in the hand is worth two in the bush." Don't let a full price offer get away in hopes that a better one will come along.
From the little you've told us, it sounds like you're making sound, prudent, rational decisions. And the proof in the pudding is the fact that many of the homes you've pursued eventually sold for less. Keep doing what you're doing. The market is still on your side. The cost of money is still cheap. Ask your agent to run some recent numbers in the communities you are shopping in. I bet you'll feel better knowing that your experiences are typically the exception and not the rule. As both a certified residential appraiser and a Realtor, I'm seeing very few "2nd rounds of bidding" and the numbers indicate that the needle is still tipping towards the buyers. Let me know if I can help in any way. Take care and good luck!
YES!!!!!!! This is what I've been saying....go after the older ones if you want flexibility...
Pricing a property is a stressful and not usually 100% sure thing, on top of that, sellers always think that "their" property is worth more than it actually is. Agents try to get them to list it lower, you're just feeding into their beliefs......
As far as agreed upon drops... we hope to get it outta them :-) but regardless, sellers usually have their absolute lowest in their heads. It certaintly doesn't go into the contract.
My agent tries to get me into homes on the Thursday or Friday before the first open house. But, by finding homes that match my needs, and offering the seller exactly what they want (full asking), I may be sending the wrong signal to the seller and they may believe "if this guy offered $X on the first day, we should certainly get $X++ if we hold out through the weekend." What they don't realize is that I have a very specific type of house that I am looking for (Capes with 3br and full bath upstairs) and I am willing to pay a little higher than a lot of other people because when I find a typical Cape with 2br upstairs, I factor in the cost to add a third. My realtor has tried to use this to my advantage in negotiations, but the seller assumes that if I want it that bad, I will pay more (which, admittedly I should have on one occasion), but usually I am only willing to pay what I believe a house is worth, and when that happens to be what the owner is asking, great.
Plus, I am a pre-qualified buyer that is renting, so I have nothing to sell. My realtor has tried to play all of this to my advantage, but I think logic goes out the window when the a seller sees a full offer on the first day and thinks he/she may have hit the jackpot and gets ready for a bidding war.
Everyone wants to sell their home - sooner or later ...
Some of it is greed, some of it is just plain ego, but most of it is misinformation - very bad misinformation and that makes for very bad decisions ... combine all 3 of those and you'll have a house sitting party - and it will sit and sit and sit ...
>>> "I made an immediate counter offer but was told by the seller's agent thought I was pressuring the owner to sell."
Think about it .. most consumers buy and sell every 12 or 15 years whether they need it or not, so they get with a listing agent ... most (not all) agents will take the listing still knowing the home needs paint, a new kitchen and the dark blue carpeting on the floors went dead 7 years ago .. plus the property is probably overpriced 10%+ over the nicest comp in the area ..
The advantage to the agent is they can hopefully depend on the other 3,122 agents in the area to make the sale ... advantage to the seller - zero.
The issue becomes - most agents don't school their clients properly .. they get into the head bobbing mode and 3 months later the seller is looking for another agent ...
If they would have been upfront with the seller before and had actually *walked* the seller through 5 or 6 comps in the neighborhood, you wouldn't be having this question .. because sellers would actually see, touch and smell their competition instead of some hieroglyphics on a spreadsheet ... and if the potential seller becomes mindless --- don't take the listing, simple ...
As time goes by, the seller will drop their pricing, but this should have been explained, done and handled 3 or 4 months before by *their realltor*.
The issue still at hand is all that misinformation that consumers have to waddle and pick through, no wonder bad decisions are made everyday while their agent is still in another head bobbing mode.
This is from a friend up north that sat and watched it: http://www.newsnet5.com/station/15238119/detail.html
This coming from an area where 232 days is common in the very best of neighborhoods, and home prices have dropped 15%+ ... where did they ever get these figures from.? Trulia doesn't see those figures ... the bad part, all those home sellers that watched it - will believe it .. thats going to be one tough spring market - very sad.
Full price offers from extremely qualified buyers (super pre-approved, no contingency on selling their place, standard, or less, inspection contingencies, minimal financing contingencies, etc...) are worth their weight in gold these days around here. Keep your ducks in a row and keep looking at properties. One of these times it will pop for you....
I think in many markets, we have reached a point where homeowners that don't need to sell are going to hold firm, or keep their properties, rather than sell for less.
This could be the start of a standoff, since most prospective buyers still think values will go further down.
It will be interesting to see what happens!
It is not uncommon to get into bidding wars on BankOwned properties or traditional Seller owned properties that are priced well. This unfortunately has become the status for many parts of the country with inventorys that are lower than usual due to shadow properties (foreclosed properties yet to be listed.)
When inventory goes down there tends to creat competition for the ones that are good properties (and sometimes even dog properties where investors get into bidding wars.)
All I can say is that you have to go with the market conditions for your area. If your area is having bidding wars over properties then you have to decide if you want to get involved or wait until there is more inventory and less bidding war. With Spring/Summer coming inventory in most areas is expected to grow and you may have less of an issue.
Best of Luck,
1. The home buying process can be very frustrating. Several sellers have been beat up on price over the last couple of years, because of the constant barrage of media that embellishes the state of the housing market. Therefore, many sellers are receiving low ball offers. Remember, real estate is local and not all real estate markets have seen the same declines. Markets like Newton, Weston, Lexington and other metrowest markets that have great schools have more stable prices.
2. Sellers may be underwater and trying to get their â€œperceivedâ€ value of the home, rather than what the market will bear. It may not be the agents fault, but rather the seller does not understand the current market value of their home. Although, the blame could be placed on the real estate representing the seller. One possible scenario, the sellerâ€™s agent may have convinced the seller that they could sell their home above market during the initial interview. Some agents make this mistake, so they can beat out the other real estate agents that want to list the home for sale.
3. You mentioned that you are looking at the following markets: Watertown, Auburndale in Newton, Arlington Heights, and Warrendale in Waltham. As you may already know, these markets have remained relatively strong during the downturn. You can visit my site to see the latest sales in Waltham: http://novelrealty.wordpress.com/2011/02/28/waltham-massachu
4. Donâ€™t give up and stay positiveâ€”you will find a home. In this market, keep your eye on the ball and you will eventually hit a home run. This is a buyers market, but the caveat is that we are in a volatile market. Here is a link to my website with an article about 8 Things to Consider Before Making an Offer: http://novelrealty.wordpress.com/2011/01/12/8-things-to-cons
Best of luck to you!
I'm not sure if you have had a buyers agent behind if you did they would be able to explain to you the history of the house and what the realistic value is of the home. What is it worth. Everyone wants a deal but there are homes that are priced to sell. Forget trying to take advantage of the market and the seller. Its usually comes down to making a fair deal with both parties.
I've never had that many offers not accepted for one buyer ever.... especially with offers so close to asking.
You're attracted to these properties because they're appealing. But when a seller knows their property is appealing for one reason or another, of course they're going to be less flexible.
Find the seller who's property has been on the market for 90 days, who can't figure out why their property ISN'T appealing... you'll find them much more flexible.
I know you think that I am looking for the perfect property at the perfect price, but the issue here is that in most cases the price I offered was more than what the house eventually sold for. So, if anything, I am valuing these homes too high.
The areas I have been looking are: Watertown, Auburndale in Newton, Arlington Heights, and Warrendale in Waltham.
I have been working with a buyers Realtor.
I have been in mortgage lending since 1992 and I can tell you that I have seen just about everything and a good realtor can make all the difference in the world. It is not unusual when a listing agent/seller receive several offers on a property that they ask for final and best offer from those that made an offer. Did you have your agent re submit your original offer as final and best or did you not submit a bid. I don't get why the counter would have been an issue.
The 2 homes that went to inspection and you walked away from I am sure at the time of your offers the sellers felt that they could get what they wanted for the property without making any concessions. Hindsight is 20/20. If they knew then what they know know they probably would have accepted your offers and made the concessions.
The key is to work with a realtor that is an experienced negoatiator. Their ability to negotiate on your behalf can be the difference in having an offer accepted or not. I have had many situation that realtors that do not have the highest offer have been able to win the bidding war because they are better at negotiating than the other realtors involved.
Assuming you are looking in the Newton area, I would say this may often apply.
In general though I'd say most sellers are having to concede to the fact this is a soft market and only very realistic pricing will net them a sale.
A realtor must present any bonafide offer to their seller. The seller decides whether to accept or decline, not the realtor. You can always submit a second offer. Often sellers will test the waters and hold out for 6 weeks or so to see if they can get their price---then they will weigh the feedback from the marketplace an go from there.
With regard to concessions, many sellers are loathe to grant them as they feel they are already taking a beating on price; and this is their perogative.
You can always speak to the seller personally and emphasize your interest in the property .
It sounds like you've come across people who want to sell but don't have to. It's tough to get a good price from people that don't HAVE to sell. Asking for a second round of bidding isn't necessarily greedy if they have two identical offers... It's that agents job to get as much money as possible for the seller, you can't get mad at someone for doing their job....
It's simply negotiation, watertown isn't exactly suffering from the mortgage crunch. If the sellers can afford to wait out the market, they have every right to, whether it makes you happy or not.
It sounds like you've been spending a year waiting for that perfect property at the perfect price to pop up. The bad news is, there are other's like you, with the exact same thought. So when you finally found that place... 5 others have too, and all of the sudden you've lost all and any negotiation leverage in the deal, and you're not willing to put up with it.
So here's a crazy thought, instead of waiting for that perfect deal, like everyone else is, find a good buyers agent, and go make a deal happen on one of the properties that might be a little overpriced... At least you'll have less competition and thus more leverage when negotiating...
Although I am not familiar with your local real estate market, what you have discovered is that all real estate markets are local. Even though there are many areas in the country where the bottom is dropping out of the market, that may not be true in your area. So, assuming that your's is still a "seller's market", you are experiencing the meaning of that: sellers are not very negotiable on their prices. That does not mean that they are greedy (although that may be a part of it), that mainly means they are responding to market place.