You’ve heard me say that I think it is my job to conduct a proper bidding war between all buyers and push for top dollar – and I will give them ample opportunity to pay it! In this case, it was 10% over list price.
But the houses that need work are more prone to falling out of escrow once the scope of the project starts to sink in. It is part of the business, and you have to be able to bounce back quickly to maintain momentum.
Brings up an interesting question. It seems hungry buyers will do the heavy lifting on price chasing after a hot one. Seems like the tougher issue is picking the right buyer out of a handful. How do you do that? Is there any trick too that?
Seems like people have gotten a little squeamish all of a sudden.
It will probably blow over in a few weeks, I don’t think Europe or china will suddenly implode so after a while it will blow over IMO.
I think the key to picking the right Buyer is to have them cross-qualify with a personal loan broker. If you have a trusted loan broker that reviews a Buyers information, and the Buyer allows you to do that, then they are truly serious about the property.
Forcing buyers to discuss their personal financials can be a turn-off to some.
How about this for old-school: I try to meet them in person, and have a conversation. In this case, both buyers were qualified (one was cash), but the project must have overwhelmed them.
Seems like people have gotten a little squeamish all of a sudden. It will probably blow over in a few weeks.
It’s red hot right now, but it isn’t fixer season. Buyers are optimistic about the spring selling season, just like the sellers. They hope a non-fixer is right around the corner.
I won’t cross-qualify; if that is really a condition, so be it. I’ll still submit the offer, but I’m not giving some loan broker friend of the listing agent all my personal information. I think a lot feel the same way.
I think Jim’s approach is as good as you can get. Everybody wants the ‘cash’ buyer, but are they always the most motivated to close? At closing, even financed offers are all cash —- to the seller.
The market seems fickle. There are tons of buyers out there looking, but most want move-in ready ‘done’. Jim’s listing in question is a little short of that.
Move-in ready should be priced appropriately. The problem is when the fixers are priced like move-in ready.
Buyers are now catching on and not taking the bait any longer.
You have a turkey, then price it like a turkey.