Thinking you'll get a better deal by waiting?

Hey Everyone,

Just some random thoughts from some situations we've come across lately. Several situation have happened like below. This usually happens with homes that are underpriced for the neighborhood already, but nobody is moving to put in an offer:

- Client is interested in a certain house...say at $550,000

- Client AND buyer agent keep watch on the property...Agent checks in with listing agent regularly to determine if there's any activity...

- Property is reduced in price to $525,000

- Buyer agent calls listing agent to see if they have contracts coming in due to the reduced price

- Listing agent informs buyer agent that they have multiple offers and will submit on Monday after the weekend's over

- Buyer is informed and makes the decision to put in a contract

- Buyer agent educates buyer on how to submit their offer now that there's competition (if you really want the house, be prepared to offer higher than the newly reduced price)

- Buyer offers lower than the reduced price against buyer agent's advice, and contract is not accepted.

If the buyer had offered $510k or $515k when the property was at $550k, they would have been significantly better off. More than likely their offer would have been accepted or negotiated, as they were the only contract and only serious interest.

Now, with multiple offers, they would realistically need to offer more than the reduced list price in order to get the property.

The moral of the story: if you like the property THAT MUCH, move on it now. Don't wait...you'll lose the property and regret your decision.

Talk to you soon!