I recently got to experience a part of real estate that I don’t do often. I got to be a seller. In all of my life, I have only been a seller 4 times. I sold the first house we owned a long time ago. I sold two rentals in the past several years. And just this week I sold another rental property.
The first sale of this house fell apart and it came back on the market. Two of the offers I got were from people who had seen it when it was first on the market.
Wrong way #1
I got an offer from somebody who had lost in multiple offers the first time it was on the market. It was the exact same offer with just the dates changed. The buyer’s realtor seemed a little upset that I didn’t take it the first time and was a little snarky in letting me know that I should have accepted it then. Here is the thing. If I didn’t pick your offer the first time when I had other offers, why would I pick it again when I also had other offers. They should have changed some terms to make it more attractive to me. I even told the buyer’s realtor what I didn’t like about the offer.
Wrong way #2
I got a phone call from a realtor who had a couple of questions about it. This realtor asked if I did “Escalation clauses.” I wasn’t totally sure what he meant but I did tell him one of the offers I had in hand did have an escalation clause, so I guess I do them. He then told me how they were not fair to buyers and that he wouldn’t show my house to his buyer. Since I had two other offers in hand, I really didn’t care. He called me later that night and said his buyer wanted to offer $150k for the house that they hadn’t even seen yet. The list price was $130k. Both my offers were $130k and $130,500. If he had submitted an offer earlier, and done the escalation clause he was opposed to, his buyer might have gotten my house for something like $131,500 instead of $150k. He dropped the ball. Instead of riding his high horse about a perceived injustice in the market, he should have shown her my house and written an offer. But no, he lost his client the house and was willing to let her overpay for it.
Right way #1
I get a phone call from a very wise agent. She tells me how her people saw the house the first time it was on the market. They currently live on that side of town and want to stay. That tells me these buyers really want the area. She tells me that they are preapproved with a local lender. Always the best choice. I asked her who she usually recommends for a home inspector. One of the inspectors she mentions is one I personally use when I buy houses. I tell her that and the next thing I know, they have scheduled an inspection with the inspector. So, I am a seller and a realtor. What am I looking for when examining offers? The best terms I can get from a buyer that I feel will mostly likely get the deal done. This agent recognized my concerns and adjusted. In the end, her ability to think about what she could do to get the house for her buyer is what got it.
This is what you need a realtor for. Today’s market is like a traffic jam. You can have a realtor who sits there not moving and complains, a realtor who just stays stuck in the same lane, or one who figures out how to get around obstacles. I feel sorry for the buyers represented by the first two agents.