Everybody Wants Me

Love your homeAs the real estate market moved from a buyer’s market to a seller’s market in North Texas, things were heating up quickly in real estate.  The economy was turning around, companies were hiring and relocating to the DFW area, and there was a shortage of homes for sale.  This caused our real estate market to become a seller’s market….and not just a seller’s market, a HOT SELLER’S MARKET.

Just at the start of this seller’s market cycle, we listed a property in Plano for a couple who was moving out of the Metroplex to live closer to their kids and grandkids.  Ron and Lucy had lived in their house since before the recession, and they had good equity in their home. We reviewed the comparable sales with them, and determined a fair listing price.  Literally within hours of being on the market, they had plenty of showings and were receiving offers to buy their home.  Some people sent offers without even seeing the house in person. 

While Ron and Lucy were excited to have so much interest in their home, however, it was quite overwhelming to have so many people want your house….and want it now!  It was like being a movie star and being surrounding by the paparazzi!!  It was such a whirlwind of activity. 

Ron and Lucy picked the best offer within the first 24 hours and started the process of selling their home.  However, 2 days later, the buyer backed out of the contract.  While Ron and Lucy had plenty of other offers to choose from, we decided to put the house back on the market for showings.  Again, there were a ton of buyers looking, and many sent offers.  Sometimes with a letter to the seller pleading as to why the seller should take their offer instead of someone else.

After several conversations about the speed that things were happening, we decided to slow the process down by telling all buyers that we would consider all offers on a specific date (a couple of days away).  That way the frantic pace of people rushing to get inside the home, and rushing to send an offer would slow down….plus the sellers needed some time to think.  After all, buying or selling a home is a big process with a huge financial impact.

Once the offer deadline arrived, we met and discussed the offers.  We had 43 offers to choose from.  That is a lot to sort through.  The sellers made a choice based on a combination of sales price, time frame to move out, strength of the buyer’s financing versus cash purchasers, and end use of the property (deciding between a buyer who intended to live there or a real estate investor).   

They decided to sell to someone who planned to live in the home for many years to come.  Once under contract, things went smoothly.  The home inspection was ordered and the buyer didn’t ask for any repairs. The appraisal was done and while it didn’t appraise for the sales price, the buyer paid more money out of pocket to ensure the sale went through.  The title work and loan documents were complete.  On closing day, the sellers had their moving truck ready for their next adventure, living near their kids and grandkids.

The moral of the story is that sometimes, while it’s nice to be wanted and to be the most popular person, you have to slow things down so that you can think clearly and make the best choice for you.