Pulse is a recurring column where we ask for readers’ takes on varying topics in a weekly survey and report back with our findings.
In this current red-hot market, real estate agents should not be surprised to hear clients raise concerns, ask questions or even take a step back and slowly crack open the exit door. That’s why they have to be prepared.
Last week, we asked you, our readers, to share some of the most pressing objections your clients are communicating today and how you’re responding to them. Some clients are hesitant about getting tangled up in bidding wars. Some are worried about selling — only to have to pay a hefty price for a new home. Here’s everything clients are expressing fear and concerns about today.
- My last sellers received multiple offers, where most of the buyers automatically offered $10,000 – $15,000 over list price, and they included a special tip that offered paying up to $10,000 over appraisal value if we run into appraisal challenges. I tell my buyers to move quickly. My daily quote is: “If you sleep on it, you will not sleep in it.” Remove contingencies. Yesterday (April 13), I was writing an offer for a buyer who was willing to pay $20,000 over $530,000 listing price where the listing said, “Seller will be reviewing offers on 4/14.” Unfortunately, the sellers sent a message last night stating that they received multiple offers and had already accepted an offer with “no contingencies” for $15,000 over listing price. This means that their buyer is purchasing a 2005 home “as is,” and the buyers are also letting the sellers stay in the home for 30 days after closing for free, so their kids can finish out the school year. We had a sweet offer, but the seller never even saw it. Now, we will hope to be backup option. If a seller asks my buyer clients to remove contingencies, we try our best to mitigate the risk while understanding what the seller’s true desires and motivations are for selling. However, this requires good communications from the Realtors involved. Is their priority price, confidence in the buyer’s ability to close without issues, or is it timing? Do not assume all sellers want to close in two weeks. Right now, most sellers are worried most about moving during the school year, so flexibility with transfer of possession is a key priority this time of the year.
- Clients say, “I don’t want to get into a bidding war.” [My] response is: “You can’t win if you don’t play!”
- Clients are saying, “I don’t want to get in a bidding war to buy, but I do want to sell my house and get multiple offers.” But the truth is, you can’t do one without the other unless you want to lease a home.
- Clients say: “I really want to do an inspection, but I also want to be competitive with my offer. What if I do an inspection and promise not to ask for repairs?” Never will I recommend not doing an inspection. All I can do is educate them on what we are seeing in the market — and what we are seeing is that buyers are waiving inspections. And if they do choose to do them, then they are most likely not asking for repairs.
- “Why sell? It’s going to cost me more to get into a new home with the prices where they are today, so maybe I should stay where I am.”
- Buyers: “I don’t want to be caught in a bidding war.”
- That prices are too high.
- “I should just wait this market out.”
What did we miss? Please share your thoughts in the comments section below.
Editor’s note: These responses were given anonymously and, therefore, are not attributed to anyone specifically. Responses were also edited for grammar and clarity. Inman doesn’t endorse any specific method and regulations may vary from state to state.
