By Dian Hymer
The first half of the year was record-breaking for home sales. But, the National Association of Realtors is predicting that the pace of home sales will ease some in the coming months. If so, buyers could find less competition from other buyers than they did earlier this year. With interest rates at multi-decade lows, this could be a good time to buy.
Don't be surprised, however, if you run into a seller who has grandiose notions about the value of his home. A recent California Association of Realtors study revealed that 85 percent of the sellers surveyed said they were selling now to take advantage of recent home price appreciation.
What can you do to convince an unrealistic seller who wants more for his home than you think it's worth? A tactic that works for many buyers is to accompany the offer with a personal letter. In it, you could explain a little about your background, how long you've been looking, and especially how much you like the property. Some sellers will soften on price if they identify with the buyers.
House Hunting Tip: One of the most persuasive points you can make with the sellers is to provide them with proof of your financial ability to close the sale. Plan on getting pre-approved for the mortgage you'll need to complete the transaction before you make an offer. Then present the sellers with a copy of your pre-approval letter.
Offering to close the sale quickly usually attracts the seller's attention. This is particularly so if the sellers have already bought another home, or are under pressure to meet another financial deadline. Pre-approved buyers can cut weeks off the time it normally takes to process a mortgage.
Keep your contract as simple and straightforward as possible. The fewer contingencies, the more confident the sellers will feel about accepting your offer. But, don't sacrifice your own security by recklessly waiving contingencies.
For instance, if you haven't had the property thoroughly inspected by qualified professionals before you make an offer, your contract should include an inspection contingency. Shorten the contingency time period to make your offer more.
It may help to accompany your offer with comparable sales information to support the price you're offering. If you've been looking at listings for some time, and have seen the comparable sales, let the seller know this. The seller may be impressed with your knowledge of current market values.
Your real estate agent can help you obtain comparable sales information. If you're gathering information yourself from the Internet, make sure your agent reviews this before it's presented to the sellers. One buyer presented the sellers with comparable sales information she'd found on the Internet. Unfortunately, the listings were from a different neighborhood. They weren't at all comparable.
Sometimes the best approach with an unrealistic seller is to do nothing, at least for a time. Last year, buyers fell in love with a home in the upper Rockridge area of Oakland, Calif. The listing was priced too high. The seller was adamant about his price. Even so, the listing agent encouraged the buyers to be patient because the seller had to sell. When the listing agent thought the time was right, the buyers made their best offer and the sellers accepted.
Don't be discouraged if a disgruntled seller outright rejects your offer. Let the listing agent know that you're still interested in the listing if the seller decides that he wants to sell at a reasonable price.
The Closing: Plan to resubmit your offer later. If the seller doesn't receive another offer, he may become more realistic in time
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