Should I wait to take action?
Q: The price is too high. Why don’t I just wait until they lower it and then take action?
I get this question a lot. My observations: the best opportunity often seems to come when the property has been on a while at the current price. When the Seller drops the price, they are likely to dig in at the new number, and less likely to take a lower offer before giving it some time. If they manage price drops correctly, they can always keep the pressure up.
Battle-worn Buyers
I just had another client ask me whether he should make an offer on a property he likes…Buyers typically ask this if they are worried about getting emotionally committed to a home and then not getting it; normally by being "beaten" out by other Buyers. Every case is different, but generally…make the offer. Unless you are so battle-worn that you just can't take it anymore…dust your shoulders off and get back in there. You can't win if you don't play. Better to play and lose than to not play and see someone else win a game that you could have won.
To make a “Contingent” offer…or not
To make a “Contingent” offer…or not
I recently had the opportunity to share some thoughts on the use of a “Buyer’s Sale of Property” contingency for a home they like. They like the home, but are concerned that they have less price leverage with that contingency included. Here’s what I told them:
It is true that a Buyer conceivably have less negotiating power when making a contingent offer, but sometimes the Seller has a bottom line that ignores that element; that is, their opinion of value is not tied to a contingent v. a non-contingent sale.
It is also true that it is relatively unique for a Buyer to find a situation in which a) they like a home and b) the Seller is in a position where they might seriously consider a contingent offer on that home.
It is also relevant to those Buyers who might make a contingent offer that if such an offer is accepted and goes through to close, it will likely help the Buyer avoid the “two moves” situation that selling first and then buying often requires. That avoidance can save real out-of-pocket dollars (movers, storage, short-term or broken leases) and allow the Buyers to avoid sometimes costly disruption to their lives and careers.