Archive for the 'Back up offers' category
It feels like spring is here already — I am not talking about the weather, I am talking real estate.
January is tipycally a less active month but it is a lot more active than usual.
More people are getting pre-approved than previous years in january and more people are out looking for properties and making offers so the question is: are there enough properties to satisfy the demand, the answer is no. There is not enough on the market. Multiple offers are more common and people are willing to go above he asking price.
Is it a sign that the official Spring market will be a strong and busy season ? if it is, the same thing seems to happen across the country.
So what is motivating buyers to buy ? Is it because buyers expect home prices to rise ? Is it because buyers expect the interest rates to jump in the few months or is it because they expect the rents to continue increasing ? The real motivation may be a combination of all.
Is the market becoming a seller's market ? Once more people see that, we will see more homes going on the market and possibly prices rising.
For more information, please go to www.BostonPropertiesNow.com or contact Emmanuel Scibilia at 617-669-6277
What is the advantage of writing a letter and what does the letter need to be effective ?
In this world of technology and internet, it is great to get a personal letter or a card even when it's someone you're doing business with. That's why an increasing number of buyers are writing letters to sellers in competitive situations where offers could be very close to each other.
It also helps if offers are considered too high with concerns that it may not appraise.
I had a buyer recently who made an offer on a condo that was new on the market, she wrote a letter describing what she liked about the condo and how how well-maintained it was, the friendly neighborhood, that it was close to stores and that it was convenient to her job. She talked about her occupation and that she had lived nearby for several years and that she would take good care of the place. The strategy worked. Her offer was accepted.
It is better to be sincere and to keep it to the point not to exceed one page and it's not worth doing it for a bank-owned property but some sellers are not so impressed and may only look at the price and terms of the offer so there is no guarantee.
Another important thing to do is to make sure you submit the letter to your agent and to avoid contact with the seller especially without your agent's knowledge. Buyers should never have direct communication with sellers.
The letter should describe features and compliment the seller. It can also describe how long the buyer has been looking and where.
You can also try to find what you may have in common with the seller and add it in the letter.
Keep it short and sweet but be careful not to overdo it and don't expect your offer to bridge a $25,000 gap between your offer and the next one.
Sometimes buyers lose out in a multiple-offer situation or by making an offer a little too late. It is good to know that you may have the opportunity to make a backup offer. A backup offer is one that's accepted subject to the collapse of an already accepted offer.
The seller can have more than one backup offer, It's rare in the current market but it happens on occasions.
If you have the opportunity to make a backup offer, should you do it? Buyers are often reluctant to make a backup offer because they feel it will strengthen the resolve of the buyers in first position to move forward if there is an bump on the road such as an inspection issue.
Buyers can continue searching and don't need to wait to know if the first offer is finalized. If you make a backup offer, you can continue your search to find a home to buy.
It's usually worthwhile to make a backup offer because there is a high fallout rate in the current market. Just don't sit around waiting for the first offer to be finalized.
From the sellers' perspective, it's usually a good idea to counter an offer for backup position if there is more than one offer. Some buyers won't make a backup offer because they may have another house in mind if they don't get yours.
As a seller, If you have a backup offer and the first offer collapses, your home goes to the backup buyer without going back on the market. This can be a benefit to both buyers and sellers. The backup buyer doesn't have to face multiple offers again, and the sellers don't have to go through the hassle of finding another buyer.
Back offers can be good; sellers should feel comfortable with a prospective backup offer; it may be a great opportunity especially in a buyer's market.
Go to www.BostonPropertiesNow.com for more information.