Today we’re going to talk about navigating in a sellers market.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: We’ve been talking about negotiating. This is a climate where there’s not enough supply and plenty of demand. So Bob and I are getting our skills tested in regards to how to navigate it for buyers.
Bob Nelson: It’s an interesting game, and frankly it is a game because it’s an effort to bring a buyer and a seller together. The buyer wants the lowest possible price, the seller wants the highest possible price. That’s not the only point. But I mean we are at absolute odds in the process.
Bob Nelson: Now the buyer understands if they’re going to buy something, they do have to meet somewhere near the market. They can try to steal all they want, but it’s not going to work.
Marcia Edwards: It is fastening. I used to run into buyers who said you know, if I have to compete I’m going to walk away from this house. Now people that recognize that if it’s a good house, you’re going to compete.
Bob Nelson: You will compete or you won’t be in the game. Now one way of competing nicely is be the first one to the door with an attractive offer and hope that the seller says that’s what I want, I’ll take it. As opposed to standing back and seeing if there’s other people that will play the game at the same time.
Marcia Edwards: I find it a little amusing when it’s a first time buyer price point of home and center of Eugene and someone runs in and gives me an offer for it, my seller that has a two hour expiration on it. So you need to make a decision in the next two hours, whether this is the buyer you’re going to sell it to or not. Your emergency is not the sellers emergency, so it’s not likely that the first in the door is going to have an exclusive opportunity to buy the home.
Bob Nelson: That’s an interesting game then, because if it’s not an exclusive, what are do you do? As a buyer, do you fire off with your best shot first? Do you attempt to find the bottom by coming in with a lower offer with the hope that the seller will come back and negotiate somewhere off of their asking price?
Marcia Edwards: Well it’s been interesting, other parts of the elements of the offer have a huge influence and impact on what gets the sellers attention. For example, I recently had an offer come in initially for a young couple and then they pulled that offer back and grandpa came in and bought the house cash. They changed it from a conventional loan to cash purchase. All of a sudden they were the most attractive to my sellers, so there are tools out there especially if you’ve got grandpa up there.
Bob Nelson: Well it’s an interesting process because a seller in most instances is selling so that they acquire something else, and if it’s not cash to them it’s going to be a troublesome situation. So they’re waiting for the cash to come through the door.
Marcia Edwards: We’ll talk more about how to be an attractive buyer next program.
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 5:30 on KPNW for the “Real Estate Today” radio show.