Price matters but isn’t the most important thing
Whether you work professionally in real estate or find yourself buying and selling, there always seems to be a common thought around selling a property which is that price is most important. Although the price of the property is certainly important, it’s not the only thing folks need to consider when buying or selling a home. Let’s take a look at this from both sides and pretend we are buying and selling for a moment.
If you’re in the market to buy real estate locally, you have likely already recognized it’s a pretty competitive market to be in. Since our market is competitive, it often results in multiple parties interested in the same property. When you have identified the property you want to purchase, it is now up to you and your realtor to secure the purchase. Your realtor should do some due diligence on their end and call the listing agent to get some insight towards activity on the property, other offers, and motivations for the sellers. After this your realtor will prepare your offer. In preparing the offer, price is the obvious thing that will be there. Other factors that will influence your offer in the eyes of the seller are proposed dates and deadlines, seller concessions, additional provisions, survey requests and contingencies on the sale. If you’re in a competitive situation you want to make sure your initial offer is “signable” to avoid back and forth with the seller and potential of losing the property to another buyer. Although price is important, it’s only one factor a seller considers when reviewing your offer with their realtor.
If you’re in the market to sell real estate locally, you likely just want the most money and quickest closing for your property. This is yet again where I would caution a seller. Just as explained above, the seller cannot be only concerned with price but has to take other factors into consideration as well when reviewing the offer from a proposed buyer. In example, an offer of $400,000 with a home sale contingency and 60 day close might not be as attractive as an offer for $390,000 that has no home sale contingency and can close in 30 days. The misconception is that money is all that matters. This could not be less true when dealing with real estate transactions.
The bottom line here is that when you find yourself ready to buy or sell, you need to have a trusted realtor on your side who is working exclusively for your best interests. Real estate transactions can be complex and it’s important to realize there is much more that goes into a purchase contract than just a price.
Shawn Manwaring is a Broker Associate with Roaring Fork Sotheby’s International Realty in Glenwood Springs. Shawn services Western Garfield County and the lower Roaring Fork Valley. He can be reached at 970-389-6069, Shawn.Manwaring@SIR.com or http://www.ManwaringProperties.com.