After four months on the market, the sellers took the REALTOR’S® advice and reduced the list price on their home. This move attracted some inquires and showings and within two weeks an offer was being negotiated.
By the third round of negotiating, $2,000 stood between the buyer and seller.
- The buyers won’t pay any more because they are stretched to the max with their mortgage company. To pay more would cause them not to qualify, resulting in no sale. They also agreed to the seller’s closing date.
- For the sellers, this was a matter of pride. They already dropped the list price; they negotiated down to 98% of the new list price, and now--for $2,000--the buyer wouldn’t budge.
- The listing salesperson was at a loss. He knew that this spurt of interest in the home would slow down, no other offers were yet forthcoming, and the sellers were anxious.
The sellers decided to sell because they wanted to move closer to grandchildren who lived out of the area. They bought a new condo under construction well over a year ago, and were now within two months of closing. They needed to sell their existing home.
The REALTOR® suggested they think it over and to consider the following. If you decide to turn down this offer, no one can predict how soon another offer will come. When it does come, what if that buyer will not pay you any more or possibly something less? The longer the home is on the market the greater that possibility.
If you choose not to sell, you will need a bridge loan to close on the new condo and carry the costs of owning two houses. Besides interest costs on the bridge loan and the monthly condo fee, you’ll pay taxes, heat, electric, and insurance on two homes. Insurance on the vacant home will be more. If you decide to move without selling, a vacant home can seem less attractive to potential buyers and put you at a disadvantage when negotiating a new offer.
Accepting this offer will avoid the burden of these added costs and will get you where you want to go--to be with your grandchildren. Looking at it this way, accepting $2,000 less than you want is a good investment and a sound financial decision. What’s more, the buyer’s offer is reasonable and within the market range we discussed when listing the property.
The REALTOR® waited in his car while the sellers discussed things privately. Within minutes Mrs. Seller waived the REALTOR® back inside. She said, “We’ve talked it over and what you say makes good sense. Let’s accept the offer and get on with our lives. Waiting is a risk we frankly don’t want to take.” The seller signed the offer and the rest is history. The right perspective can go a long way to realizing one's goals and saving money.