Multiple Offers Are Back In Northern Nevada
In Northern Nevad Real Estate ... Multiple offers are back, but they aren't what they used to be. We were involved with three separate multiple offer situations just last week, and each was different than the other. What is causing this? It is apparent that investors are now bringing cash to the table and buying real estate. This infusion of cash is healthy for the overall real estate market, but can be frustrating to the Buyer looking to buy their primary residence.
One of our offers was full price on a bank-owned property. Our Buyer was beat out by a lower offer that was from a cash Buyer. Go figure. A full price offer from a user and a lower offer from an investor. Ironically, two days after the bank selected the cash offer, the cash Buyer rescinded the transaction and our Buyer ended up being selected to buy the home. It turned out well, but what a strange sequence of events.
Another of our Buyers last week offered $20,000 over the asking price, and didn't get the home. We still don't know the circumstances of the other offer, but in this day and age of "Highest and Best" being a bank strategy for handling multiple offers we were very surprised when this great offer wasn't even given the opportunity of a request for Highest and Best. How do you plan for that one?
The third was a short sale listing of ours that generated three offers in just over 24 hours. Again, the investors were in play offering cash, quick close and low price. Fortunately for the lender there was a Buyer looking to move in and enjoy the property. The accepted offer was for over asking where the investor offers were for more than 10% below asking.
Everyone is certainly coming to the table with good faith offers, but their individual agendas are influencing their offers in an amazing variety of ways. If you can offer list price and lose out to a lower offer, or make a high offer and not get the home, how do you know how to proceed? There is no standardization any more - things are just wide open. In the case of the three offers, they were not in a tight price pattern, one was more than asking, one was 10% less, and another about 7% less than that. All of this on a home that was priced well enough to get three offers in 24 hours - very well priced.
Our advice: Buyers should be aware that there is competition out there. If you really want a home, don't play games to save a few hundred bucks. Make your best offer, make it strong, and enjoy the home you really want to live in.
Life is too short to compromise your living standard if you find a home you want to live in. You might get a better dollar value, but you are just marking time in a compromise. Remember the emotional return on your investment. If you love your home, and appreciate it daily while you live in it, there is great value that is hard to measure. Understand, however, that it is more important to you and your family in the long run than a few dollars.
With all this market excitement you might wonder why some homes aren't selling, or even getting showings. This market is price sensitive like no other we've seen. Review your price ... realistically. You can wait for the anomaly Buyer, one that will pay too much because of a feature or two, but that is risky if you really want to sell. Price it right and hold firm. It is better to counter ten offers than having none to work with. When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless! Lisa Wetzel & Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472. email@example.com, www.carsonvalleyland.com
Lisa Wetzel and Jim Valentine are the authors of this blog. Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704. To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.com