Housing Inventories in St. Pete –Tampa have declined, the trend is now multiple offers – sellers love ‘em, buyers – not so much.
Housing inventories in the St. Petersburg – Tampa area have declined, and prices have recovered to the point that sellers with appropriately priced real estate are getting multiple offers, often full-price offers and more. That’s music to their ears. It puts them in a position to negotiate the highest and best offer, sometimes over appraised value. For buyers, it means they need to be ready to make an immediate decision and out maneuver the rest. For everyone, it can be stressful.
An experienced Realtor will guide you through the process. Multiple offers are not uncommon these days, but they need to be handled delicately, lawfully and ethically.
Sellers often want to immediately jump on strong offers, especially on houses that have just hit the market. But that’s not always the best decision. Often, a Realtor will advise the seller to step back and see if additional bids materialize. They usually do, and when they do the seller is in the position to select the best price and terms being offered, or ask the competing parties to come back with their best offers before they make a decision. Some Realtors and sellers will negotiate privately with each prospective buyer and then choose the winner.
Buyers never want to hear the phrase “multiple offers,” especially if they really want a particular home. And if they do really want that particular home, they need both to be patient and be armed with all the information a seller, Realtor or bank could ever need. The key is to show the seller you’re serious and you’re ready, willing and able to close the deal within his or her time frame.
Here are some key considerations for today’s multiple offer market:
Advice To Sellers In A Declining Inventory Market
- Be patient. If your Realtor and you have priced your home competitively you’re likely to get multiple offers.
- Trust your Realtor. He or she is well trained and experienced in handling multiple offers lawfully and ethically. Take their advice. You’ll be glad you did.
- Understand and carefully consider all terms of the offer. For example, the highest bid may be contingent on the buyer securing financing, which may take time, if approved, while slightly lower cash bid may speed the process.
- Consider ordering an inspection before listing your home. Once submitted to the buyer, this could also speed the closing process and give you important negotiating fodder.
- Let buyers know you’re expecting multiple offers. It’s common courtesy, and it could kick start a buyer’s motivation to start with his or her best offer.
- Don’t negotiate with buyers behind your Realtor’s back. That’s just wrong.
Advice To Buyers In A Declining Inventory Market
- Ask the Realtor if there are multiple bids. They’re not legally bound to tell you, but the code of ethics say they must, if asked.
- Don’t submit offers on multiple homes at the same time. Also unethical.
- Ask if the seller has a recent property inspection report. If so, check out who prepared the report, when and fully understand any problems and solutions it addresses. If you’re unsure about the source of the report, order your own.
- Make a large earnest money deposit, more than what’s required, if possible. The seller will understand you’re serious.
- Have you lender provide you with preapproval documents.
- If your offer is accepted, and the closing is really soon, be flexible with the sellers and give them ample time to gather all their stuff and go.
- Lead with your best offer. Chances are you know the seller will get multiple offers. Go in strong. If your bid is accepted, you haven’t paid more than you were willing to and you can move ahead faster. If you don’t get the house, you can immediately move on to the next opportunity.
- There will always be a next opportunity.
- We’ve seen buyers present sellers with heartfelt personal notes as to why they want to buy their house. Most sellers have an emotional attachment to their home, and often want to see it in the hands of someone who will enjoy it as much. Hey, it can’t hurt.
But at the end of the day, trust your Realtor.
For more information, contact Chris today at 727-642-9107.