The market is heating up and changing from a buyer’s market to stability and even a seller’s market. As we move into February 2013, there is only a 2 month inventory supply in many parts of the DC Metro area. (A six month supply is considered to be a market in equilibrium) Multiple offers are no long unusual.
When you find that dream home and you are able to negotiate successfully to a contract, don’t be surprised if the seller still takes a back up offer. If you win the house in a multiple offer setting, the seller might take a second offer as an insurance policy in case you don’t perform. However, the seller might also take a back up offer that is submitted a few days later, written with the benefit of knowledge that the property is already under contract. That offer may be for an amount higher than the your offer.
When you conduct your inspections be prepared for a recalcitrant agent and seller, who know that there is a better offer to be had – if they can just get rid of you! If you ask for a few items to be repaired, don’t be surprised if the listing agent/owner are unwilling to negotiate on the repairs and tell your agent if you don’t like it, then you can cancel the contract and move on.
The way in which the negotiations are handled can create hard feelings. Just remember – you will get the house at closing – broom clean – and that means without the seller too! Just smile and be glad that you are the winner in the house purchase process! Someone else really wanted your house too – but you are the one moving in. Don’t let a grumpy seller who is mourning the lost dollars get to you! Enjoy!
If there is a contract on a home, the parties should negotiate in good faith and with good gra. It’s not about us…it’s about our clients. Let’s be professional and work together towards a mutually beneficial transaction.