"Love at First Sight?" Probably Not
Is there such a thing as a "too-fast offer," especially in a Buyer's market where lots of homes are sitting?
The short answer: actually, yes.
Most Buyers seriously contemplating a home will go through at least twice, just to double-check their first impressions, see it with fresh eyes (vs. 5th on a list of 8 showings), etc.
If they are contemplating major work, a 3rd visit, accompanied by contractors, may even be in order.
So what does it mean when you get word that an offer is coming in barely hours after a first showing?
It could mean that it was "love at first sight," and the Buyer knows all they need to know to make an offer, then and there.
Or . . . . the prospective Buyer is looking a for a deal. A very good deal.
In my experience, such Buyers don't invest much, emotionally or time-wise, in the properties they're scouting because it's all about the price.
If one Seller rebuffs them, they just move on to the next. And the next, and the next. . .
Showing posts with label Love at first sight. Show all posts
Showing posts with label Love at first sight. Show all posts
Monday, February 8, 2010
Sunday, May 24, 2009
Like (vs. Love) at First Sight
Real Estate 'Lightning'
Does love at first sight happen in real estate? Absolutely.
However, I'd say it occurs less than 10% of the time. When it does, though, you know it: like lightning striking, the Buyer -- or Buyers, if it's a couple -- immediately have a changed look in their eyes and, in fact, their entire demeanor shifts.
In a word, everything about them telegraphs "Ye-s-s-s!!"
It might just be my imagination, but I swear you can feel the crackle of electricity in the air.
Most of the time, however, I'd characterize Buyers' initial reaction to the home they end up buying as "strong like."
From "Like" to . . Anxiety
When they first see the home, it just seems to feel right. Then, when they see it again, the feeling grows.
The home may not have everything they want, but one of two things inevitably happens: the Buyers either decide it's not that important, or, they busily get to work figuring out how to add what they want, or, change things to their taste.
(This is yet another uncanny instance where there are strong parallels between homes and relationships: how many times have you heard a single guy (or woman) tick off all the attributes they're looking for in their ideal mate? Then, when the right person shows up, "the list" somehow seems to get discarded.)
As a Buyer's agent, I can always tell when my clients are progressing to making an offer, because another emotion kicks in: anxiety.
As in, "how long do we have before somebody buys it first?"
Does love at first sight happen in real estate? Absolutely.
However, I'd say it occurs less than 10% of the time. When it does, though, you know it: like lightning striking, the Buyer -- or Buyers, if it's a couple -- immediately have a changed look in their eyes and, in fact, their entire demeanor shifts.
In a word, everything about them telegraphs "Ye-s-s-s!!"
It might just be my imagination, but I swear you can feel the crackle of electricity in the air.
Most of the time, however, I'd characterize Buyers' initial reaction to the home they end up buying as "strong like."
From "Like" to . . Anxiety
When they first see the home, it just seems to feel right. Then, when they see it again, the feeling grows.
The home may not have everything they want, but one of two things inevitably happens: the Buyers either decide it's not that important, or, they busily get to work figuring out how to add what they want, or, change things to their taste.
(This is yet another uncanny instance where there are strong parallels between homes and relationships: how many times have you heard a single guy (or woman) tick off all the attributes they're looking for in their ideal mate? Then, when the right person shows up, "the list" somehow seems to get discarded.)
As a Buyer's agent, I can always tell when my clients are progressing to making an offer, because another emotion kicks in: anxiety.
As in, "how long do we have before somebody buys it first?"
Friday, May 22, 2009
Every Seller's Worst Nightmare
"Left at the Altar"
It's every Seller's worst nightmare: you're hours away from getting the last set of signatures that will make it a "done deal," when the Buyer informs you that they're backing out.
Why? Because they found something that they like better.
Does it happen?
Sure, but much less often than you'd expect, for three reasons:
One. By the time Buyers have gotten deep into negotiation on a Purchase Agreement, it's likely that they're already emotionally "invested" in your home.
In fact, it's a pretty safe bet that they'll have already seen your home several times, memorized the listing information, and carefully researched the neighborhood, local schools, etc.
In the course of doing all those things, the prospective Buyer's attachment to the home usually intensifies. Just as it can be said that you "bid on something you want," it's also true that you "want what you bid on."
In fact, many times I have to caution Buyers I work with not to start "mentally redecorating" or otherwise psychologically move into a home that's for sale until they actually have a signed Purchase Agreement.
Second. Buyers today have already done their homework.
With the exception of foreclosure sales, it seems that the average Buyer today spends more time studying the market, learning prices, and touring homes than a few years ago.
If you know what's out there, and are clear about what you're looking for . . . you're more likely to make a deliberate (vs. impetuous) purchase decision -- and less likely to have second thoughts later.
Will more homes continue to come on the market? Of course.
However, if you've really done your homework, the odds of a new listing offering more house, for less money, are quite low. In the rare event that that happens, multiple offers invariably eliminate any discount.
Three. Once "seasoned" Buyers find something they like and commit to it . . it's natural to stop looking.
In that way, homes are a lot like relationships.
Once you find the home you really love . . . all the rest seem to fade into the woodwork.
Even if the relevant emotion is only "strong like" (vs. love), prospective Buyers will mentally begin the process of customizing and updating their prospective new home to their taste, solidifying their attachment. (see, Reason #1).
As I like to tell prospective Buyers, if you'll only settle for a home that's a "10," the odds are pretty steep. However, if you're willing to consider something that's a "7" or "8" that over time you can make a "10," suddenly, there are a lot more choices.
Now if only one's romantic partner was amenable to such retrofitting.
It's every Seller's worst nightmare: you're hours away from getting the last set of signatures that will make it a "done deal," when the Buyer informs you that they're backing out.
Why? Because they found something that they like better.
Does it happen?
Sure, but much less often than you'd expect, for three reasons:
One. By the time Buyers have gotten deep into negotiation on a Purchase Agreement, it's likely that they're already emotionally "invested" in your home.
In fact, it's a pretty safe bet that they'll have already seen your home several times, memorized the listing information, and carefully researched the neighborhood, local schools, etc.
In the course of doing all those things, the prospective Buyer's attachment to the home usually intensifies. Just as it can be said that you "bid on something you want," it's also true that you "want what you bid on."
In fact, many times I have to caution Buyers I work with not to start "mentally redecorating" or otherwise psychologically move into a home that's for sale until they actually have a signed Purchase Agreement.
Second. Buyers today have already done their homework.
With the exception of foreclosure sales, it seems that the average Buyer today spends more time studying the market, learning prices, and touring homes than a few years ago.
If you know what's out there, and are clear about what you're looking for . . . you're more likely to make a deliberate (vs. impetuous) purchase decision -- and less likely to have second thoughts later.
Will more homes continue to come on the market? Of course.
However, if you've really done your homework, the odds of a new listing offering more house, for less money, are quite low. In the rare event that that happens, multiple offers invariably eliminate any discount.
Three. Once "seasoned" Buyers find something they like and commit to it . . it's natural to stop looking.
In that way, homes are a lot like relationships.
Once you find the home you really love . . . all the rest seem to fade into the woodwork.
Even if the relevant emotion is only "strong like" (vs. love), prospective Buyers will mentally begin the process of customizing and updating their prospective new home to their taste, solidifying their attachment. (see, Reason #1).
As I like to tell prospective Buyers, if you'll only settle for a home that's a "10," the odds are pretty steep. However, if you're willing to consider something that's a "7" or "8" that over time you can make a "10," suddenly, there are a lot more choices.
Now if only one's romantic partner was amenable to such retrofitting.
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