This is a great topic for discussion given the current market. As a seller in today’s market… you have more leverage than you’ve had in years. But…how much leverage do you really have?
The first thing you have to realize is that rumors are just rumors…if you heard through the grapevine your neighbor down the street had 24 offers… it doesn’t actually mean this is true. Secondly, not all subdivisions or properties are created equal. The demand can vary greatly. So with that in mind…you have to be realistic with how much leverage you really have in your specific situation. If you’re asking…”Andrew”, why the buzz kill? The Answer – I want our sellers to understand when they have the substantial upper hand and when they do not.
Two examples – Seller “Don” lives in the community of Summerlin with a SFR 4/2.5 bath home. The home is priced competitively at $399k and is well taken care of. Seller “Andy” resides in the same city of Las Vegas but lives in the the far NW corner of the city. (past Ann/95) Andy is priced near the top of the market in order to try and break even after purchasing the property at the peak of the market.
In these examples – Don can expect to receive multiple offers. Possibly 10 plus offers over the first weekend. Don has leverage. Don has the ability to ask for highest and best, send multiple counter offers, ask for appraisal contingencies to be waived, etc… Seller Andy will benefit from the current market in that he will most likely be able to get out of his bad investment w/out a substantial loss, however, he may only see 1 offer over the course of the first month. In this example, Andy should be aggressive in his negotiating, however, it may not be in Andy’s best interest to be overly aggressive and potentially run off his 1 offer.
So why this blog entry? We want our sellers to be informed and making the best choices for themselves. If you have a question about your subdivision and what is really happening out there…give us a call. We can pull your subdivision and give you the average DOM and LP/SP ratio for your area. Don’t rely upon hearsay. Call us and ask for the facts.