Listing Courtesy of MANN & SONS INC
It was only a few years ago that the last thing a prospective Rehoboth Beach home buyer had to worry about was being outbid. Those were the days when the bottom seemed to be falling out of the Rehoboth Beach real estate market. Anyone brave enough to be looking to buy at a time when the real estate market was frightening most folks away was not only plucky—they were also alone. Sellers who had to move no matter what found themselves forced to accept offers that they knew were well below their property’s true utilitarian value. The only saving grace was that those same sellers could turn around and buy in their new community at the same kind of crazy discount.
That, as they say, was then—and this is now. As the real estate market in Rehoboth Beach continues to revive, sellers’ mindsets have returned to normal. Knowing that their Rehoboth Beach home is a valuable commodity, they demand offers that are respectable. One national survey found that that buyers are acting quickly on the most sought-after homes, and that overall, median DoMs (Days on Market) fell to 32 in March from 40 just a month earlier.
As the spring selling season heats up, some buyers who find the home of their dreams may also suspect that they aren’t alone. It calls for definitive action—and if it looks as if just making an offer might not win the day, some additional action. For home buyers who have a good idea that they must act decisively or miss out, here are some options for increasing the odds that their offer will be accepted:
One tactic to prevent being outbid is to add an escalation clause to the offer. If allowed, such a provision states if the seller receives another offer, then the buyers are willing to increase their own offer to a set price. For instance, a home buyer who makes an offer of $310,000 might include an escalation clause in increments of $3,000 should a competing offer appears, up to a maximum of $360,000.
Since people have different reasons for selling their home, another tactic is to discover what's important to the seller. Perhaps they have a new job opportunity and need to vacate as quickly as possible. Or maybe they have plenty of time, and are holding out for the maximum price. Your agent may have a good idea what is motivating the sellers so that you can craft your offer around their requirements. If a normal schedule calls for an inspection period of 10 days, but the sellers want to move quickly, they may be motivated by a shorter inspection period.
Usually, home buyers find it prudent to keep the upfront earnest money pledged to a minimum, allowing them more leeway in limiting their loss if they decide to back away from the deal. Increasing the earnest money shows the sellers you are serious about completing the purchase. It also subtly affirms your financial stability. An even more substantial demonstration is to become pre-qualified with a mortgage lender. Unless an all-cash purchase is possible, it’s the best way to guarantee you will be able to act quickly. Even if competitive bidders appear, when you are a pre-qualified buyer, you increase your chances of winning out.
When I’m tapped to act as your buyer’s agent, I become your advance scout and strategic partner as you explore this spring’s exciting Rehoboth Beach real estate market. I hope you’ll give me a call! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestate.com
There are two kinds of situations that homeowners looking at Sussex County comparables run into:
1. THE SIMPLE COMPS: Your Sussex County home is part of an area that’s more uniform than not, in a neighborhood where there are a sufficient number of similar houses to have produced several sales recently. Your street may not be part of a literal development with models that have near-duplicate floor plans—but the area is, in general, homogenous. When it comes to selling your Sussex County home, you’re in luck!
2. THE NOT-SO-SIMPLE COMPS: AKA, the incomparable situation. Your area home is one of a kind, almost totally unlike any other in the neighborhood (two bedrooms, six-and-a-half baths) or unlike any other in any neighborhood (who else has a swimming pool built into the attic?). All right, maybe your house isn’t quite that weirdly incomparable, but it’s still the case that no similar home has sold within a 5-mile radius within the last year or two. When it comes to selling your Sussex County home, you may still be in luck—but not because of ‘the comps’!
When your property falls into the first category, one whole part of your selling situation becomes a piece of cake because of the comparables. Sussex County comparables from previous sales make the ultimate, convincing case that your home has at least $X value, because the market says so. In writing. Real people have plunked down their hard-earned dollars as proof. Even better, real banks have backed them up with their also very real dollars. It’s all verifiable in the public records.
When your property falls into the second category, in terms of the comparables for our town, it really doesn’t matter if you have the most attractive house or the best bells and whistles and bathroom renovations that will take a buyer’s breath away. If no other home within a reasonable distance has sold with a reasonable period (say, six months) that are close to the same size as yours, or if none has anything like similar features, you and your Realtor® are going to be pretty much on your own even settling on a listing price. Here’s a few lesser known reasons why paying attention to comparables is important when selling your home.
· Unique amenities won’t always guarantee a higher comparable value. If the amenities are unusual for Sussex County, it might make it that much more difficult to find enough comparables in your area to come up with a listing price.
· School districts factor heavily into value. You might have grumbled about paying school taxes if you aren’t sending your own children off to school, but the quality of the school district has a large influence on comparables.
· Scarcity of housing inventory in your neighborhood can be either an advantage or disadvantage. It’s a plus if the housing inventory is low due to high demand (there will be enough recent sales information to set an accurate listing price). It’s a negative if scarcity occurs because no one is buying nearby homes—and appraisers will find it more difficult to place a value on the property.
It’s my job to get your home the best offers in the shortest amount of time for either category of Sussex County comparables. Give me a call—regardless of which one yours falls into, we’ll discuss how we can produce results that are truly incomparable! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestate.com.