Asking Price Is Critical – Avoid Reaching for the Stars

Certainly, when it comes to unique luxury properties, the sky may indeed be the limit in terms of pricing. However, setting an excessively aggressive asking price for your home can have significant consequences that may hinder you from achieving the highest possible sale price. Of course, it’s wise to leave room for negotiation, but counting on finding that one buyer willing to pay your unrealistic price is a risky proposition.

In the past, “testing the market” to gauge potential offers had no real downsides. However, in today’s era of ubiquitous real estate websites that provide property information to the general public, you can no longer afford to simply let your property sit and wait to see what unfolds. As time passes, unsold properties are perceived by buyers as stale, which won’t help you maximize your selling price.

If you wish to assess the market, consider reaching out to the brokerage community in your area. They can provide insights into the speed at which properties are selling and at what price point. Nevertheless, avoid listing your property right away, as doing so initiates the countdown.

Making an Offer? Put It in Writing

So, you’ve discovered the home of your dreams and are eager to make an offer. Here’s my advice: always put your offer in writing. There are two compelling reasons for doing so:

1. To Prevent Future Misunderstandings

Putting your offer in writing helps prevent any potential misunderstandings down the road. It creates a clear and documented record of the terms and conditions you are proposing, which is essential for a smooth and transparent transaction.

2. To Demonstrate Your Serious Intent

Equally important, a written offer conveys to the seller that you are a committed and serious buyer. When submitting your offer, consider including the following:

• A bank pre-approval letter, if you have one, which demonstrates your financial capacity.
• Your attorney’s name and contact information, for added assurance.
• If you’re planning to pay in cash, providing proof of funds, such as a letter from your bank or financial advisor, will suffice.

The more comprehensive and detailed your offer, the more it underscores your commitment. This can be particularly advantageous if there are other potential buyers vying for the same property. A buyer who appears both able and willing to close the deal can be more appealing to a motivated seller than one who simply offers a higher price. Additionally, it helps establish a professional and trustworthy image, which can work in your favor during negotiations.

If you have an agent who refuses to put your offer in writing, it’s essential to remember that real estate agents work for you. They are there to represent your interests and facilitate your real estate transactions. If you are equipped with the necessary proof of financing or cash, your agent should be more than willing to draft and submit your offer on your behalf. In fact, it’s your right to expect this level of service from your agent. If they are not meeting your expectations in this regard, it may be prudent to reconsider your choice of representation and seek an agent who is truly dedicated to helping you achieve your homeownership goals. Your agent should be your advocate, working diligently to secure the property you desire.

Remember, a property will ultimately sell for what someone is willing to pay and what someone is willing to sell it for. Real estate prices can be more flexible than they appear at first glance. In fact, it’s not uncommon for buyers to make seemingly low offers that are eventually accepted, or for sellers to revisit negotiations after some time has passed. The real estate market is dynamic, and individual circumstances can lead to different outcomes. Making a well-considered offer, even if it initially seems lower than the asking price, can sometimes open the door to productive negotiations and a successful deal. So, don’t be afraid to explore your options and make offers that align with your budget and preferences.

Mark Your Offer with an Expiration Date

Frequently, when you submit an offer, the property owner or their broker may seek to maximize the selling price by presenting it to other potential buyers. This strategy aims to incite a bidding war, which can be advantageous for the seller but less favorable for you as the buyer.

A prudent approach to safeguard against this situation is to include an expiration date with your offer. (In our state, Arizona, the Real Estate Purchase Contract provides for this.) Clearly specify in your offer letter that it is valid for the next 36 hours, or similar wording. Such language not only underscores your seriousness as a buyer but also restricts the seller’s ability to entertain other offers, thereby preserving your position in the negotiation process.

Does Your Home Pass the Smell Test?

In my extensive career, I’ve shown more properties than I care to recount, and one thing is certain: first impressions are paramount. How a potential buyer feels and what they smell upon entering a property can significantly impact the eventual sale. Sellers must grasp the importance of maintaining a pleasant and inviting scent in their homes, as an unpleasant or stale odor can present a substantial obstacle to finding a buyer.

If a prospective buyer steps into your home and encounters even a slightly offensive odor, you’ve inadvertently created a challenge that can be hard to surmount. It might seem like common sense, but the sense of smell is often the most underestimated factor by sellers, especially if they reside in the property and have grown accustomed to it.

Whether you use air fresheners or brew a pot of coffee just before a showing, it’s crucial to ensure that your home is free from any off-putting odors. Taking this step can significantly enhance your prospects of selling your home.

Enjoy the Process and Listen to Your Realtor/Broker

The real estate buying or selling journey is an exciting one filled with its fair share of ups and downs. It’s crucial not to let the rollercoaster of emotions get the best of you.

For Sellers:

• Understand that not every person who walks through your home will have the same affinity for it. Some may express opinions that could be off-putting or even make lowball offers. It’s essential to remember not to take such comments to heart and maintain a level of detachment from your property if you’re selling. Soon, it won’t be yours, so begin the process of letting go.

For Buyers:

• Avoid making lowball offers just for the sake of it. If you genuinely love a home, take the time to assess comparable property values and craft your offer accordingly. Making excessively low offers can risk offending the seller and may deter them from negotiations. If you discover your dream home, don’t let it slip away by procrastinating or making an inadequate offer. In the competitive real estate market, losing out on your ideal property to another buyer can be a regrettable experience, particularly in the high-end luxury real estate sector, where each property is truly unique.

In both buying and selling, it’s wise to heed the advice of your realtor/broker, as their expertise can guide you through the process and help you make informed decisions. Enjoy the journey, stay open-minded, and trust the professionals who are there to assist you in achieving your real estate goals.