We all know it’s a bull market both at Wall Street and here in northeast Wisconsin. The area has been experiencing massive growth and with it has come roughly 24 months of a sellers’ market. As the market continues down this path it gets harder and harder for buyers to figure out what to do. The competition is killer. More importantly, some buyers have been their own worst enemy and the ultimate reason they haven’t gotten an accepted offer?
You over played your hand. I see it all the time, the buyer who has been searching forever and finally finds a home that has been on the market for 2 months with no offers. The buyer thinks they have a potential to ‘negotiate’ and try to low ball the seller. The seller and buyer go back through multiple separate counter offers when suddenly another offer comes in and is closer to where the seller wanted. BOOM. The second buyer has the accepted offer. The buyers have to understand where things are at and instead of trying to pull the seller apart with contingencies and price, a nice clean offer at 96-97% list would have gotten the deal done quickly.
You weren’t realistic when it comes to price. I get it, prices are inflated right now and it’s tough to look at prices from even 6 months ago and where they are now. But buyers have to be realistic. The true value of a home is determined by the seller and buyer agreeing on a price. That is the value of the home. So as a buyer if you don’t like the price, move on to the price range you want to be in.
You second guessed yourself. This happens to the best of us. But if you put a fair offer together and you put your best foot forward, you should be able to wake up in the morning after not getting an accepted offer on a home and know you wouldn’t have paid a dollar more. If this is the case then you are doing okay and there is no need to second guess yourself. However, if you wake up the next morning and think “Well, I would have gone up another $3000. I wish I had.” Then you need to keep that in mind for the next offer you put in.
You were stubborn. In my opinion this can be both a good thing and bad thing. If you set your price and aren’t willing to pay any more and end up walking away, this is good negotiating. However, if you won’t budge on small items simply because of principle, then it’s likely you will have a tough time getting the home you want. Furthermore, if you aren’t willing to budge, you should ask yourself if you really like the home enough to be purchasing it.
You didn’t trust the other agent or party. Believe it or not this is a common one. With multiple offers coming in on properties it is sometimes hard to distinguish what is real and what is not, I think it is only natural to be skeptical. That being said all Realtors are held to the highest ethical standards and are not allowed to deceive or mislead. You either trust the other party/agent or don’t but getting wrapped up in if they are telling the truth or not will never be productive in getting you to your goal of purchasing the home.
You thought the other party had more at stake than you did. This boils down to acting quickly and looking out for yourself; in my opinion. Write up a fair offer (or whichever offer you like) and negotiate from there. As soon as someone feels as though they are being taken advantage of, especially in a sellers’ market the relationship will go south or the seller may move on and wait for another buyer.
You took too long to make a decision. This one is by far more common than you might believe and while I agree you need to confident writing an offer, I can also tell you that timing is everything. Even a day can occasionally change the negotiating field to be more difficult or even impossible. When you know what you’re looking for and you find it, strike quickly and you will be moving into that home sooner than you think.