The current recent upturn in the real
estate market has created many new deal-making scenarios. If you’ve been in the
market to buy or sell a house in the past six months or so, you may want to
consider this when making or receiving an offer. No longer does the amount of
time on the market signal an opportunity for a lower price. On the contrary, it
may offer a value opportunity since more recent entries into the market will
likely be at higher prices. Inventory is
so low that along with higher prices, attractive properties will have offers
quickly and often followed by other offers! Even when there is a price agreement, buyers are
still coming with offers, often, over asking price. Handling multiple offers properly, requires an
experienced Realtor, so make sure your agent has the knowledge and experience
to handle complex negotiations and go over your strategy in advance.
When choosing among competing offers, be sure to consider the impact of terms and not just the selling price. Is the offer cash deal, and do they actually have the cash to buy your million plus waterfront home? If financing is a contingency, are the buyers willing to forego a mortgage contingency if you are in a multiple-bid situation? Is the buyer willing to take the property, as is, or will you be asked for contingencies that will cost you money and time?
Finally, make sure the process is handled properly by your listing agent. Multiple bids are always challenging and require extra effort to assure transparency and a sense of fair play. If the parties feel that they were not given fair consideration, they will pull out. Sometimes, offers are made under pressure, and upon reflection the prospective buyer with the highest offer will pull out. Unfortunately, someone must lose but everyone should walk away feeling the process was handled fairly.
As
a buyer, if you are in a “multiple offers” situation, timing is essential. Trust
your agent. I have seen situations where a delay in making a counter was used
to the advantage of a competing offer.
Also, remember that in New York State, the only thing that makes the
deal official is a signed contract by both parties along with consideration (usually
a down payment).
We have lots of experience with these types of aggressive sales negotiations. Let us help you navigate through these perilous waters. Call us to discuss your particular needs at 631 765 5333, email me at broker@BeninatiAssociates.com or visit our offices at the corner of Main Road and Horton's Lane, next to Southold's Town Hall - we always have something great "brewing" for you!!!
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