People in real estate, both home buyers, and sellers, at times, wish to sleep on it. They want to see if this is the true and best direction. Some want to speak to a higher power and others to their friends and family. Real Estate is a huge decision and shouldn’t be made in haste.
However, it’s only fair that we talk about the truth, which can occur, by waiting.
At risk for the waiting home buyer
Some home buyers see the home, we write the offer, the seller counters appropriately, and the buyers sign off, escrow is opened.
Some buyers need to speak to those confidants about signing off or not.
Some buyers need to think about or sleep on it. I’m all for whatever my home buyers want.
Here is the risk of waiting. After an offer is written, signed by the buyer’s side and submitted to the seller’s and then relayed to the home seller, the buyer does not have an accepted offer and is not in escrow. Other’s can write and overtake the current buyer’s offer and have their accepted.
I know this sounds elementary. But some consider their offer being in pole position, having to be honored first and foremost. Some think that the home seller cannot entertain other offers until the current buyers offer is dealt with, seller countered, buyer countered – back and forth. No matter how long it takes. Some think that offer has to be honored until an agreement is met, or until all parties decide they cannot make the deal work.
That is not true. During any negotiation, another buyer can walk in and make an offer giving the seller everything they want. During any tarrying, the seller can accept another offer.
It’s simple. Sometimes, waiting can cause a lot of regrets. Now, the way it typically works is if you are looking at a property that is outside of the “sweet spot” for the local real estate market. Considering a home that is higher than the median price, you may be okay sleeping on it.
You may be able to go back and forth with the seller for months to strike a deal, never having another buyer enter the picture.
Either way, it turns out, at least you know the possible scenarios related to waiting as a real estate buyer. At times, it’s the best thing and at other times it causes grief.
At risk for the waiting home seller
Home buyers are not alone in the waiting process. During every real estate transaction, the seller has options as well.
It may be that the home seller receives the first offer quickly. In a hot Santa Clarita Valley market, this may happen in as little as a couple of hours after the sellers home hits the local market.
When that happens, after the home was placed on the MLS Friday at 4 pm – at 6 pm they get the call from their agent stating they have an offer. Most sellers want to tarry over the weekend to see what other offers they receive.
That’s fine, just understand those buyers, the ones that may have been looking for a long time, knowing what they want, may not wait for you to “see what happens”.
Those home buyers may find something of equal or better quality. They may have been monitoring the local market and watching for one of the similar homes which is under contract to fall out, low and behold it happens while you were waiting to see what other offers you were going to receive
Of course, there is the scenario that you put the home on the market and your agent enteres it into the multiple listing service Friday at 4pm. Only to get the first offer at 6pm. The sellers want to wait for the weekend to see what happens. Low and behold they receive several additional offers. All are countered with the Highest and Best counter offers and they are in a perfect place.
Real Estate is about adult decisions. Those first buyers, the ones the seller waited on could have been the buyers that were going to see the transaction through until the end and close successfully. Maybe those buyers were not looking to have anything repaired and had been looking so long they were ready to accept the seller’s home as is.
On the other hand, the home buyers that the seller signed off with fast, could be the buyers that pull out of escrow for some reason.
As long as you know the risk, you can make better decisions. Whatever you decide to do, wait or sign off, make sure you make that commitment with your self that no matter what, you know you made the right decision.
Even if things fall apart and you end up on the wrong side of the transaction. I.E. without a home or without a home buyer.
The bottom line is life is full of decisions that need to be made, real estate is no different. I have made a lot of life decisions I have regretted, but I survived. You will also and who knows, there could have been some reason why it didn’t work out.
Or, on the other hand, a reason why it did work out 🙂
Be well, make sure you take a moment to check out my latest real estate radio broadcast for the Santa Clarita Valley. I have produced a syndicated real estate radio show since about 2008, where I speak about the information and news that is prevalent for home buyers and sellers within the Santa Clarita – Valencia CA real estate market. Before 2008 there was no way for this to be done by one that wanted to pass along the info in audio format. However, I was an avid blogger for Santa Clarita real estate, as I am today!
Let me know when I may be of service to you. Be well and safe. I’m Connor MacIvor.