Hey, gang -
Just received another "Contingent on Sale" offer on one of our Suburban Chicago IL listings. Anyone want to guess if the price on the contract was -
A. Respectably high, or
B. Ridiculously low!
If you guessed "B", you're right - but you knew that anyway.
And, wouldn't you know, the prospective buyer doesn't even have his home listed yet! When he does, says the inexperienced Buyer's Agent, of course he is going to build in some "negotiating room" in his own price. When will he list the home - after MY client accepts! How much time does the prospective buyer request to sell - four months, then another two to close.
In other words, let's play pretend real estate, if my client were to suddenly have a brain lapse and accept this offer, he would't close until late May of next year, if at all!
Some parts of the country have very challenging markets right now, even more exasperated by the time of the year. But buyers seem to be getting even bolder with their demands!
Who has an insight?
Also, see our consumer-directed blog posting on our BlogChicagoHomes.com Blog Center, which our Team originally posted on November 12th.
Dean & Dean's Team Chicago
Gary from Texas -
I agree - but, as you know, most agents lack good training, and many are in desparation mode much of the time. Whatever their clients ask them to do, they do without question, and are afraid to give real advice and counsel.
Many feel "What the hell?", and some buyers are just stubborn. Unsure about your market, but here, especially in some of the middle-class suburbs, some sellers are taking offers we would previously consider "ridiculous."
Drop in anytime!
Dean & Dean's Team Chicago
In our area Dean it kind of depends on the town and the neighborhood as far as how the market is going. Some sellers are stubborn about dropping their prices too lower and most ignore the lowball buyers. Now if it's a distressed sale of any kind the sellers are considering all offers.
I was doing some CMAs over this weekend for buyers and some cities were strong sellers markets and others were strong buyers markets the last three months depending on price range and town. You just have to run the numbers.
Gary from Dallas -
BTW - Thanks for adding me as an Associate. Our Team appreciates it!
Our markets are, in some ways, similar. Certain areas stronger than others. It seems universal around here, however, that market times have escalated, and the days of 30 competing multiple offers within two hours of the property hitting the market are becoming a distant memory (maybe a couple of years).
I think we all have lowball buyers, and stubborn sellers. We have to handle both with grace. That's why we make the "Big Bucks" (he said with a chuckle) - right?
Dean & Dean's Team Chicago
So, did your seller accept the offer? (just kidding). The buyer's agent obviously hasn't been around the block a few times and are letting the buyers call the shots. I only wrote 1 contingency sale all year, (actually, it was a lease-to-own type of deal), the buyer's house had already been on the market 2 months and we signed a 6 month lease. (BTW, the buyers offered full price for this house if the sellers accepted the offer.) I coached these buyers like I coach all of my buyers. I tell them to get their house on the market as fast as possible (they were a relo, so I got them an agent in their state), let's wait until the offer comes in, and then write the offer on a house here. It has worked beautifully all year.
These particular buyers toyed around and didn't take my advice until 3 months later, while the husband was driving 2+ hours to work, one way, staying in hotels 4 days a week, until we did the lease-to-own deal. I feel if they had put their home on the market in July, it would have sold by now. I'm in constant contact with their agent to see how showings are going each week.