As a home owner and particularly a home seller in Laguna Niguel or Dana Point, you have probably become aware of the low inventory of homes on the market. This has resulted in more of a seller’s market. What about homes that are not selling? Bluntly, there must be a problem with the location, the condition or the price. If a home is in attractive condition and priced fairly it is entirely possible the seller will have multiple offers. If the price is under $500,000 it is possible to have too many offers.
How will a seller view your offer? The first thing the seller will notice is the PRICE and TERMS. Price is simple and straightforward as long as you show proof of funds. What about terms? That is a little more complicated. Of course cash is king if all else is equal. Why? Because it avoids loan underwriters and appraisers and can usually be closed faster. Second, if there is a loan, WHO is the
lender and what PERCENTAGE DOWN do you have? Why does that matter? If there is 20% down or more there is no second underwriter involved over at the MORTGAGE INSURANCE Company. Less than 20% down will require that second look and review. Non-local lenders can be slow and far less responsive to the contractual time frames. Third, what other terms are offered? A buyer’s agent should determine what is the optimal time and date for closing and whether the seller needs a rent back after closing. The seller will also look at what contingencies are exercised in the contract. Maybe the buyer has removed some of his built-in contractual protections to make his offer more appealing. Fourth, how well is the offer written and what kind of reputation
and experience does the buyer’s agent have?
How will a seller handle counteroffers? The first thing to understand is
that the seller is in control and he may or MAY NOT offer you a
counter. The seller can accept, reject out of hand, or counter. If the seller
is looking at multiple offers he may pick one, counter one, counter part or all
offers (known as “multiple counter”) or offer best and final to all. There are no guarantees to the buyer. If you think you may be in multiple offers then put your best foot forward. Having a full-time, expert Realtor® is essential at this stage. Also the seller may be more resistant to any repair requests. Buyer beware.
Ron Buck, Realtor® Keller Williams Realty
Ron Buck has been a real estate broker for 16 years with over 400 successfully completed transactions. He is a 10-year resident of Laguna Niguel and is an expert in south Orange County real estate. You can contact him at Ron@JonRonRealEstate.com or 949.456.0505.