Your neighbors left money on the negotiation table. They sold too quickly, took the first offer and closed $10,000 less than they should have. Why? Personally I believe it was their agents fault.
The local real estate market is hot in spots and not in others. Even with low inventory, prices in some areas are not escalating like others. I believe that if there is a ready and willing buyer and the seller and buyer can agree on price and terms a real estate transaction should be able to close. It can of course if the terms are cash, but if the terms include financing, as in the buyer needs to secure a loan to make the purchase, it just might not happen. We have that appraisal hoop to leap through.
The other day I started to think about how your neighbor’s negotiations could affect your home sale. We need to be concerned with happening in our neighborhoods, on our street, two doors down or next door. These home sales will most likely start the story of your home sale.
Ponder this; a couple homes are in a neighborhood that was built by two builders, both with almost identical finishes. Homes are sized similar, on similar lots; you know the neighborhood – the “cookie cutter” development that is so popular in many areas of Puget Sound. Home one goes on the market for $469,950 and goes pending in just a couple of days. You hear the rumor there were multiple offers and a bidding war ensued. You won’t know until the closing which will be in about 30 days. House number two sees this activity and decides to go on the market at $459,950, very similar house but a little smaller. This home gets a ton of activity and you hear through the neighborhood gossip that there were multiple offers and it is pending in 2 days.
You are thinking of putting your home on the market which is within eyesight of each of the previous homes. The market is hot and there are no other homes for sale in this sought after neighborhood. So you wait to see what the sold prices are for the two current homes that just went pending with bidding wars. Remember these homes were on the market for about 24 hours and then offers were ratified.
It’s now 30 days later and new neighbors are moving in I give you a call because I can see the closed data in the MLS, anyone can see closed data in our area it’s all public knowledge through each counties websites. I however, can see it the day it’s available.
House 1 – sold for $459,950, didn’t seem to be a bidding war there. House 2 sold for $450,000; there sure wasn’t a bidding war on that home either. WHAT happened? Well, you know all that gossip at the neighborhood? It’s probably not that reliable. There probably were no bidding wars. Sellers took the first offer and either couldn’t show comparables to substantiate their list price or didn’t have an agent that could negotiate properly, or both.
These homes were priced right but the sellers just didn’t have the confidence in the price or the process to demand a better offer. I know for a FACT that a buyer would have taken a full price offer on either one of these homes. These homes are in a very popular neighborhood. I also know that the sellers didn’t have to sale immediately. Why the rush? Why did they leave money on the table? We will never know, but because they did your asking price and subsequently your selling price just might be affected by these sellers.
Your home is identical to home number 2, you really should be able to get $459,950 for your property in a short market time of under 30 days, however unless the buyers have cash home number 2 could affect your value on the appraisal. It’s that crystal ball thing – we just won’t know until we try. So do we try or do we wait 3 months and hopefully home number 2’s appraisal won’t have as much weight. It will have some weight; we will just have to find some more similar comps that can boost your price.
Yes, your neighbor’s negotiations will affect your sale.