Today we’re going to talk about Marcia’s current case study in residential real estate.
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
René Nelson: Hey Marcia, when you came into the radio station today, you mentioned that you’ve got a couple of offers that you have to respond to. Tell us what’s happening.
Marcia Edwards: What’s happening. We’ve got one property that’s listed at 650 and it has six offers on it right now. So what we’re doing is we’re setting a deadline so that it’s a real fair playing field and we say, “By this date, at this time, submit offers, and they’ll be considered all at once in the pool of opportunities to the seller.” Then I’ve got a property that’s 425 that has 10 offers on it and another in Creswell that has four offers on it currently.
René Nelson: Wow, that is fantastic. Okay. So let’s start with the 650. How long of a window did you give, like 72 hours?
Marcia Edwards: Seven days actually. So you want to get a week in, especially in residential real estate. I had two people come fly up to see this property while it was on the market. They needed the time to navigate this. The buyers, I feel for the buyers because each of them think this might be their next home and this is your home you’re looking at. And with that in mind, you’ve really got to be respectful and predictable in the process.
René Nelson: And I’m curious, did they see it on Zillow or multiple listing? Did their broker send it to them?
Marcia Edwards: It’s brokers that I’m seeing, not general public approaching. So they’re really relying heavily, with this low inventory, you got to know that it’s there, you got to understand the rules to the game, and it’s tough to navigate it on your own, I think.
René Nelson: Yeah. So the one that you have 10 offers on, how are you going to advise a seller how to pick the best offer?
Marcia Edwards: We’ve got to look at the strength and likelihood of success first. So the strength of buyer financially, if there’s cash, they’ve got a huge advantage. It’s tough because cash just kind of is king in this market, but ultimately, you’ve also got to make sure that they’re in, that they understand the property and everything, they’ve already seen the disclosures, that they are understanding this property and that they know what they’re going into too, because like Bob Nelson would say, “It’s ready, fire, aim, marketplace.” And so you really want to make sure these people have the confidence to close as well as the financial wherewithal.
René Nelson: So if you had an offer that, let’s say, you only had two offers on the table, one was all cash and the other one needed financing, but it was close to the all cash one. Obviously you’re probably going to lean towards cash. At what point do you decide, “I’d rather go with the financed property because it looks a little more solid?” Is it all based off of price at that point?
Marcia Edwards: No, it’s not all based on price. There’s a margin. So you do have the ability with the right counsel as a buyer’s agent on how to present this, you have the ability to win over cash. Cash obviously is going to be powerful until they don’t step up to the plate in price. If you have a good equity position, 20% equity may mean a waiver of the appraisal these days, so it’s almost as good as cash in that sense.
René Nelson: Wow. That’s great.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.