Sometimes A Full Price Offer Just Is Not Enough!


Sometimes A Full Price Offer Just Is Not Enough!
By Scott Rogers • June 11, 2020
It has happened to several of my clients lately -- we have made a full price offer with reasonable contingencies (home inspection, radon test, appraisal, financing) and we have lost out on the house. What does it, or might it, mean? Many segments of our local market are significantly undersupplied -- so as to say that there are many more buyers than sellers in the market. Thus, there are often lots of early showings and multiple offers. So, the main reason why a full price offer is not winning is because we're competing with other motivated buyers. We can likely conclude that the other buyers made offers higher than the asking price -- or with an escalation clause which would automatically increase their offer above competing offers. So, it may be simply a result of being outbid. Some buyers are strengthening their offers by removing some "normal" contingencies -- such as the home inspection contingency, or the appraisal contingency. This doesn't necessarily make sense for most buyers to do, but it is something that we can discuss. So, unfortunately, on a well priced new listing in a competitive price range -- seeing the house on the day it is listed and making a full price offer that same day won't necessarily mean you will be buying the house. As such, it's a great time to be a seller. It's not necessarily as exciting to be a buyer right now. Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 24, 2024 (unless otherwise noted).
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