It’s a ‘sellers’ real estate market: National Association of Home Builders CEO
National Association of Home Builders CEO Jerry Howard discusses mass movement from large cities to the suburbs amid the coronavirus pandemic.
If you're a buyer in today's crazy market, I truly have empathy and feel your frustration.
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If you're a seller, no doubt it's your time, but please remember that you were a buyer once, and please have a heart for these young people with kids who are desperately looking for a home.
Of course, you want to sell for top dollar, and you deserve to, but all things equal, give them a chance if they are preapproved and have proven to you that they can match the offer of a builder who would otherwise tear down your lovely home.
OK, now I've tried to help these desperate owner-user clients. But I also agree that these buyers must really put their best foot forward. Some will go beyond expectation to draw sellers' attention. For these buyers, I offer special applause and recognition.
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I recently got a buyer referred to me who had lost out on homes eight times, having offered well above list price each time. Unfortunately, they didn't have $2 million in cash, like the typical builder has.
Thank goodness we are in escrow now — their ninth attempt. We were very fortunate to also have a seller who really wanted an owner-user client but also (understandably) wanted top dollar.
The buyers started by getting a preapproval letter from Chase Bank and providing full verification of their funds for the down payment.
Next, they wrote a beautiful letter personalized to the owner with a photo of their family, and, to my surprise, their 6-year-old daughter wrote the sweetest, most adorable letter saying, "I love the pink bedroom and hope that bedroom can be mine."
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She also wrote, "I love the tree in your yard and hope my dad can build a treehouse for me and my little brother."
The buyers said, "We will pay $5,000 more than your highest offer up to $1,500,000," which was amazing considering the asking price was $1,300,000. That's a motivated buyer, wouldn't you agree?
They also agreed to close escrow in the time period of the seller's choice, from as short as 30 days to as long as 120 days. And they agreed to let the seller retain occupancy for up to 10 days after close of escrow rent-free to give the sellers time to move without rushing.
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They kept the contingencies few and short in time and offered to sign a full contingency waiver within 20 days and then release their 3% deposit to the seller with a signed deed in escrow. How could a seller say no to all of this?
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As it turned out, the seller had an all-cash offer of $1,455,000 with a full contingency waiver, but they were really moved by these buyers. Amazingly, the seller not only accepted my buyers' offer but also agreed to accept a price of $1,445,000, $15,000 less than their offer.
The deal is about to close; everyone is happy; and the buyers and seller are even scheduled to have a celebration dinner at the end of this month.
The buyers will be moved in shortly after their "9 offers ordeal" that ended with their dream come true.
It's a beautiful story.
Ron Wynn has been among the top 100 agents in America for over 10 years, as noted on REAL Trends/Wall Street Journal. Ron has represented over 2,200 sales totaling over $1.5 billion in sales volume in his 30-plus-year career as a real estate broker in California.
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