Even In A Buyer’s Market, It’s Not Always Just The Price!
As noted recently, Marin County real estate is following the national trend and is very much a Buyer’s Market right now.
It’s easy to assume that price is the most important factor when buying a home, at least as far as the Seller is concerned. It’s also easy to assume that multiple offers don’t happen.
Wrong on both counts!
A home came on market in Corte Madera last week, which got a lot of interest for three reasons. First, it’s in a great neighborhood that is upgrading, close to Neil Cummins School, Town Park, etc. Second, it’s a clearly a redevelopment project, and there aren’t many good ones out there these days. Third was the price: $650,000.
Interest was very strong. We visited the Planning Department in town with questions, and they knew all about the house, as people had been there all week. The agent told us she expected multiple offers.
Our client wanted to redevelop the property. The offer we put together was over asking price - pretty safe to assume that would be needed in a multiple offer situation.
Most important though were the terms of the offer. Terms involve issues such as inspection periods and timing, loan amounts and down payment, appraisal requirements, and length of escrow. We very carefully structured the offer to get the Seller the maximum amount of money as quickly as possible.
There were seven offers, and although our client’s was not the highest offer in terms of price, the Seller accepted it because of the terms. In essence, we created a situation in which even though the Seller did not receive as much money as they could have from other buyers, they were more confident that they could get it, and get it quickly.
Even in a Buyer’s Market, it is not just price! In fact, I would argue that confidence that the Buyer will perform is even more important. The way an offer is structured, how it is presented, and the relationship between the agents involved (more on that next time) all will affect how the offer is perceived, and whether or not it is accepted.
