Todays real estate market is different for all, including luxury home sellers and their agents.
Though multiple offers have returned on a selected basis in the San Diego and Manhatttan real estate markets (well-priced, well-located and well-appointed homes), it is still a buyers market. And with many buyers returning to these markets, sellers and their agents need to be wary of certain types of home buyers.
Michael Corbett, author of Find It, Fix It, Flip It! and the new Ready, Set, Sold! guide to selling a home figures that buyers fall into one of three categories:
- Dream home buyers (will probably pay close to full price)
- Buyers looking for a great home at a fair price (will want to negotiate)
- Buyers scouring the market for the next or best bargain (may focus on fixer-uppers at basement prices)
These are normal buyers for most markets, and cause no reason for alarm. But Corbett warns against the following types of home buyers:
- The Zero-Down Buyer. Most lenders no longer make these loans, and even if you can find one that does, your property may have a difficult time appraising for the price you are asking.
- The Bully Buyer. These are buyers both sellers and agents should avoid. These buyers will flood the seller with repair requests very often with the initial offer. The property inspection process will be torture and the resulting requests for repairs a nightmare. Corbetts advice? Move on! œThis bully approach is a prelude to endless negotiations, and his or her trying to obtain concessions by nitpicking on the disclosure and inspection.
- The Sight-Unseen Buyer. Corbett warns that this buyer is likely to be one who just wants to tie up your home and have you take it off the market until he or she decides whether to go through with the purchase or not. It can also be a warning signal of mortgage fraud, especially if 100 percent financing and/or cash-back is involved.
A tip of the hat to Marshall Loeb at MarketWatch