Not just selling shore homes, selling a shore way of life. Your resource for the best homes, hotspots, & happenings in Margate, Ventnor, & Atlantic City.

Thursday, December 17, 2009

It’s a Buyer’s Market…OR IS IT???

So last week I took one of my Buyer’s to a house in Margate that they really loved. The location was perfect, the price was terrific and aside from a couple of small changes it was just what they were looking for…so we negotiated a deal.
Now normally I will put together an Agreement of Sale (a contract), present it and wait for a response from the other agent, but in this situation, the other agent and I presented the “proposed” terms between the Buyer and the Seller prior to the signing of the agreement and all parties appeared to be in accord. However, my Buyer chose to wait over night to go over their numbers.

The next day, my Buyers were ready to sign the agreement,
HOWEVER, one change need to be made. Settlement could not occur as soon as we had previously agreed. They wanted settlement TWO months later. Knowing that this was a major factor for the Sellers, agreements were prepared and signed anyway and sent to the Seller’s agent and presented to the Sellers.

More often than not the settlement date is a key factor in contract negotiations. Every additional month that a Seller owns their property, they have the carrying expenses and they do not have use of their money from the sale.

In this case the Sellers were
not pleased with the delay at all and took several days to reconsider my Buyer’s offer. In the interim, a second offer came in.

Now the Sellers had a choice and an even better ability to negotiate with new Buyers to get exactly what they wanted. In the end these Sellers chose to accept the new offer.

As a Buyer you can’t beat yourself up, because you can only do what you can do. Sometimes it isn’t meant to be.
Is it a Buyer’s market? Absolutely! Prices have never been better and mortgage rates have never been lower. However, it quickly becomes a Seller’s market when a unique well priced property comes on the market. In the past year I have personally been involved in at least five properties that received multiple offers, because the property was desirable and priced right.

If you are a Buyer and you find a home you love. Do not hestitate or you can lose it. The same rule is true for Sellers. If you have an offer from a Buyer, don’t wait too long to respond or the Buyer may lose interest or find another home. Figure out what you want and what you need and be realistic.
Don’t waste time and don’t play games. No one ever wins!

No comments: