“It IS a competition!”
The hoped for words to a lot of sellers. Why is that?
Because competition might bring a higher than originally anticipated price.
But in actuality, sellers too, suddenly feel stress when faced with a competitive situation. What they hoped for when they first discussed selling their property, has now come to pass and they have to choose an offer to work with. What if they choose the wrong one? What if these are the only offers that will ever come in and it doesn’t come together? We’ve sat in the living room with sellers and witnessed spouses fighting over offers, trying to decide on which will be the primary offer.
Imagine, you have to decide which child gets an asset you own should anything happen. Sometimes, it is easy, but if they both want an item, who do you pick knowing that someone is going to be upset? Something that should be a good feeling, that of giving something you cherish to someone you care about, suddenly becomes a stressful situation.
It’s no different with houses and real estate. There can only be one ‘next owner’.
But what can we do to minimize the stress?
1 – Understand that if you have priced your home to sell quickly, you may get more than one interested buyer. So be prepared to go into competition. Negative surprises shake you. Expectations prepare you and then you can deal with them less emotionally.
2 – Have your advisors ready. Sometimes, you want to discuss your options with a spouse, a parent, or other friends and family. Have them there in person, or on the telephone or Skype, to be able to fully review all options.
3 –Make sure you know all of the parameters of all offers. Often offers will have pluses and minuses when compared clause to clause with other offers. Make sure your Realtor® discusses the risks and rewards associated with every contract clause. It is not always all about the highest price. Discuss the consequences of price, possession, and any/all other items in each offer.
4 – Be willing to hear their story. Since you do not know the buyers, you do not know their motives. But, most people want the house they are selling to go to people they can relate to. This is not always the case but can go a long way. Is it important to you to think about your neighbours? About who you want to see as the ideal next owner of your house? Do those things matter to you or is it strictly numbers?
5 – Know your price. This sounds simple, right? Pick the highest number. But, that is too simplistic. Pick a number that given all the other parameters, you would still be willing to accept. That will allow you to look at all the risk factors and choose an offer that best suits your overall needs and gives you the optimal chance to choose an offer that will come together. i.e. risk/reward
6 – Remember you can have more than one offer on the table. If you have a home that has gone into competition, it is possible to have one primary offer and the other(s) as back-up(s). This can provide you with a safety net.
We all have desire for our house to go into competition. I mean, what could be better than selling the home with no drawn out negotiation, and getting a price above what we hope for?
Don’t be afraid of competition.
But also remember, not all properties go into a competitive situation. But, there is a buyer for every home.
Are you a buyer heading into competition? This blog post is for you then!