When should you make an offer on a home? If you have seen a home and you would love to own it, but you are struggling with the timing of when to make the offer, or you are struggling with the listing price, which you feel is too high, you need to know how to approach this issue or you could lose the property to a buyer with a more experience buyer’s agent. The property in the photo below just sold for $250,000 after being listed in the MLS for $399,000 for a long time.
When to Make an Offer – Timing
We’re in a real estate recession, and everyone knows it’s a buyer’s market, right? We are in a recession, but it’s not a buyer’s market for the best homes. It’s a buyer’s market for all the homes no one wants, but not for the ideal homes that the vast majority of retirees want. I’ve written about how the Real Estate Market is bifurcated and the inventory of homes for the best homes are selling just like they would in a normal real estate market. I first wrote about the Sequim real estate market being bifurcated in 2007, then edited that article re-affirming the pattern in 2010, and several years later (today) I can affirm this market pattern as well established. The point is this: if you procrastinate after you’ve found the ideal property and you don’t make that offer, it is very likely that another retiree who has the same preferences you do, will not procrastinate. The first one to make the offer is likely to get the home. I have personally witnessed many buyers miss out on a property because their offer came in too late.
When to Make an Offer – How Much?
If you see the ideal property and decide not to make an offer because the current listing price is too high, you might miss out on an extraordinary opportunity. Let me explain. A seller may have a home on the market for a price they hope to get. If it is beachfront property like the photo above, they may list it at a higher price than you would want to pay. But if they have it on the market for a long time with no offers, when someone does make an offer, they might just come down in their price. Maybe they will come way down in their price. It happens all the time. I have a pending offer on a property that was listed at $399,000, and an offer was just accepted at $250,000. There are very good reasons for mutual acceptance at that price, but you get the point. Someone who did make an offer will now own the property, but there are several people who also would have bought it if they could have for $250,000, but they never wrote the offers. Do not let a high listing price stop you from talking to your buyer’s agent about what you might be able to do. Call me for free advice at 360-775-5424. I’ve written hundreds of offers, and I can share some thoughts that can help you know if and when to make an offer on your ideal retirement home.
Last Updated on September 19, 2019 by Chuck Marunde
