It is a tough market for buyers…who would have thought. We are seeing 10-20 offers on every property listing, almost always over asking price and often cash buyers. Hang in there buyers, there is just the house out there for you, but be patient.
Checking Out the Goods
Last night we had a great conversation with a newly engaged couple looking to make their first big purchase together. They asked this question:
“Can we still make offers on other property while we’re in contract on a purchase already?”
My question back was, “Would you ask someone to marry you if you were already engaged to someone else?”
Being in contract to purchase a property indicates that you’re committed to purchasing that property. Much like a fiance is committed to his fiancee, there may be an expectation that one not go out for the purpose of committing to another.
Similar to being engaged for marriage, a home purchase contract can include a contingency period when the buyer has the opportunity to “check out the goods” of the property to make sure it’s sound enough to make that final, lasting commitment.
We had a lively conversation about which circumstances might justify the submission of several offers at once. Here are a few things we discussed:
- Only make offers on multiple properties if you can afford to purchase them all.
- If you are waiting for a response from one seller and decide you want to buy another property instead, withdraw the offer on the other property first! (Same concept as NOT asking someone to marry you if you’re already engaged!)
- Work with a reputable agent who can exercise some important controls. Remember, in order for a buyer to be taken seriously, their agent has to be taken seriously too.
By the end of our meeting with this lovely couple, they committed to working with us for the purchase of a HUD-owned property. Since we are approved by HUD to assist our buyer clients, we’ll enjoy knowing that our clients reached out to us already knowing we’re qualified to help them. We can consider it a successful first date!
It’s a bit different now. Buyers are abundant and available homes in affordable price ranges are not. Homes garner multiple offers above asking price with many important contingencies shaved off the contract!
Here’s the deal. When a real estate professional tells you to BUY NOW, they’re not necessarily just trying to make a sale! Any of us agents who’ve been in business long enough have seen the ups and downs of the market and the frustration our clients face when they don’t get off the fence in a timely enough manner.
If you’ve set a goal for yourself to do something in life such as purchase a home or sell your home, PREPARE NOW! You never know when it will be too late to enjoy maximum benefits.
However, don’t feel pressured — the timing must be right for YOU…