Kim Mullan Blog
The Changing Market- the Seller's Market
July 3rd 2016
With less inventory it has been an exciting time for sellers who are priced properly and who present their homes effectively to capitalize on the demand of this captive buyer audience.
On the other hand, it has often been a frustrating and emotional roller coaster for buyers who have attempted to compete for properties to lose them to buyers who had condition-free offers and/or offered premiums in price to be able to call that same property home.
Buyers can mitigate their risks by stepping up their preparation before making an offer.
1- do as much due diligience as possible in advance! Do a pre-inspection at one of your showings- odds are if there is more than one offer someone will come in condition free.
2- if you are not in a position to remove your financing and inspection conditions then you will need to strengthen your purchase price and/or flexibility of closing dates to incentivize the seller so they are willing to take the risk of your conditional offer.
4- if you have to sell your own home consider a longer closing vs. an offer conditional on the sale of your home. In multiple offers being conditional on the sale of your home is generally "the kiss of death".
3- shorten or remove whatever conditions you possible can MOST IMPORTANTLY DO NOT DO THIS WITHOUT COUNSEL SO YOU FULLY UNDERSTAND THE RISK YOU MAY BE REQUIRED TO ABSORB- for example, appraisals that don't reflect the purchase price will require you to come up with more cash to offset the difference between a lenders appraiser and the final market price you pay- do you have that kind of cash buffer?
Finally, know your limit. At some point you have to know the price where you are just as happy to look for something else. Stay below that number!
More reasons to use a professional Realtor when trying to navigate the changing tides. Our knowledge and experience strengthen your negotiating position.