Making an Offer vs.
“Make Us an Offer” – Seller Initiated aka Reverse offer
In this challenging market real estate professionals, sellers,
buyers and any others vested interests should be thinking out of the box. What I am seeing on the national news and here
on Colorado’s Front Range first hand is that Inventory is high so there for competition
for sellers is fierce. The economy is not at its peak so there for resources
are stretched and lending has been a bit more of a challenge. The gap between buyers and sellers has seemed
to have widened because of constraints and the differing perceptions of the
market. The country’s big picture differs from Evergreens market but I’ll blog
about that and “shadow markets” some
other time. I would have predicted that the “market” would have corrected all
of this but those pesky logistics seem to have gotten in the way. The bell curve has gone towards short sales. I have done these but the pain for both the
buyer and seller tend to be great and I already have too much grey hair to
negotiate transactions that drag on for months with a low success rate with
sellers wringing their hands and buyers running out of steam after jumping through
endless hoops and dealing with poor bank communication. Here at Performance
brokers we have an expert; Yvette Putt email@example.com . I
like to deal with more positive solutions like trades and seller intiated
offers. I’ll blog about trades later also.
Some of the things I like about “Reverse offers” are:
1) The seller
can generate attention and stand out in a crowd by submitting an offer.
2) The seller
can test the waters and get an insight to what number the market would support
for their home. Though the sample may be small they don’t have to show their
hand to the market prematurely. They can of course make more than one offer but
I don’t recommend doing so at one time. They may legally obligate their home to
more than one party.
3) “A call to
action”. Issues such as contingencies’, time lines, price, lease
considerations, and due diligence issues can and probably should be addressed before
the offer which would serve as a punctuation mark so that both parties can move
forward with plans allowing more certainty in their lives.
4) Buyers may
engage in a “private negotiation” with seller for variables that are not known
or available to the rest of the market.
5) Buyers can
ask questions about the variables on the contract. Those in the industry know
that the devil is in the details and there are tens of other major variables
6) The seller
should offer a PRICE that would motivate the buyer towards the offer. The buyer
would be exposed to an invitation only deal.
for the seller is projecting desperation. This is a possible perception but
most educated buyers will see this stratagem as proactive and creative by
another party in a competitive market who just may have a bit more savvy than
the average bear. This method has a high probability of getting both the buyer
and seller closest to what they need and when they need it with the least
amount of brain damage.
I’’m all for getting people in the homes they want….Sean