Well, as promised, the results are in..... we received a second contract on the home before signing off on the contract we had been negotiating since Thursday! The second contract was far from ideal but afforded us the opportunity to let both offering agents know they had competition and that they needed to come up with their "best and final" offer. The result was that the net to the seller increased by almost $18,000 and closing will happen quickly. The first contract was the eventual winner, the buyers really were committed to buying the house - but it was a close call! Again, even in a down market, when you find the house you really want make that offer and get it done quickly!
A second interesting happening today which truly shows how crazy the market can be. We made an offer on a home for a client. The home had been on the market only three days and there were four registered offers as of this afternoon when we made our offer. We offered full price with an escallation of $50,000 more if any other offer was higher. The $50,000 wasn't enough to be the high contract and so we raised our offer another $27,500 - we don't know if that will be enough but that is really the highest we are willing to go on this property. Oh, and the asking price of the house was $825,000 - this property will sell at over $900,000. The agent took a gamble and it has obviously paid off.
This goes to pricing your home - while there are homes on the market for months and months, there are homes still selling in a few days with multiple offers and going over the asking price. This house is probably worth the $900,000, but the gamble came in on generating the interest by offering the home at $825K - about $50,000 under where other agents may have priced the property. They will never know, but in reality had the house been priced at the $900,000 to start I don't believe they would have gotten a full price offer right out of the gate - certainly wouldn't have gotten four offers with escallation clauses!
In making our offer, we compared selling prices of similar homes and felt that $875,000 was a good price for the property. We'll know what happens tomorrow as the seller is out of the country and we won't know the outcome before then. I intend to go back and do a more in-depth analysis of the property and the comparables as well as speaking to several appraisers we know that do extensive work in the neighborhood early in the morning. It will be another interesting experience seeing where this ends up! Again, you'll have to tune in tomorrow to find out the outcome!
As always BE INFORMED and CHECK BACK HERE OFTEN!
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