Our market is heating up in the Wilmington, NC area. I want to talk today about making offers on properties. Should I or should I not make a FULL PRICE offer. This is a question to many of us think we know the answer to because of all the reading we do online or in newspapers. Your answer is probably NEVER, right? What is my answer?? It depends!
Losing deals to Multiple offer situations is happening every day in our market. Our sellers are starting to get the fact if they want to sell their house it needs to be priced right. Foreclosures and Short Sales have really started to drive prices down in
many areas. It is very important in our market today to look at each individual house differently when considering what to offer a Seller.
Let’s talk about how banks are pricing their FORECLOSURES. This is typically the market where FULL PRICE offers are more common. Most all banks are starting to price their foreclosures at a price that encourages multiple offers. I have lost deals to multiple offers lately because I can’t convince my buyers that a full price offer (or even above full price) is OK. After they don’t get the property they ask, “Why didn’t I get it?” Well....You didn’t listen! Banks may try to get “top dollar” for a very short period. They will then drop their price every 30-45 days until they find that price where buyers start going nuts. I was involved in a deal this week where I told my buyers that we need to make a full price offer and make it now! I told them we had no time to play around because at this price there will be multiple offers. They didn’t move quick enough. By the time we got our offer to the listing agent - 2 others were on their way!
Moral of this blog- If a property is priced RIGHT, it is OK to make a full price offer!
-Kirby Keene