Nothing can compromise a negotiating strategy more than the stench of desperation.
Here in the Nashville real estate market (and likely many other markets), the shortage of houses available for purchase coupled with a plethora of rabid Buyers creates a veritable pall of desperation which provides very fertile grounds for relatively unbridled greed.
Here’s how this plays out:
Multiple Buyers are scouring the marketplace for THAT house. When ANY house in the market shows even the slightest hint of being available, this herd of buyers shows up like sharks to chum, and they swarm themselves into a frenzy . . . desperation personified.
The owners of said house see the frenzy and lose most of their capacity for rational thought only to be replaced by GREED. Surely with ALL of this interest in the house, one of these buyers will be willing to pay a crazy stupid price for it, right?
Let the games begin!
Heaven forbid that the “Listing agent” let this cat out of the bag before securing a solid exclusive right to sell listing agreement defining pricing and terms, in which case the seller may develop a sudden case of amnesia relating to any prior conversations about pricing and terms . . . In fact, this greed factor could precipitate (in the seller’s mind) 10’s of thousands more than the market analysis supports . . . so they might play price games like sudden increases in the Listing price.
There are things to consider:
- If the multiple buyers bring offers resulting in a VERY high selling price, will the appraiser agree?
- Are the “All Cash Buyers” REALLY all cash?
- What if the Buyers are all about the thrill of the hunt and not all that in love with the house? Will the deal hold together through the Inspection? “Buyer’s Remorse” has a habit of showing up in the form of requests for significant seller concessions which invariably the greedy ones.
- How many perfectly qualified buyers who absolutely LOVE the house and would close expeditiously and on terms and moving date optimal for the seller will walk away shaking their heads because they don’t want to play games? . . . they want to buy a house which they hope to make their HOME for years to come
This market can be a tough for both buyers and sellers . . . come to think of it – EVERY market has potential to be tough for buyers and sellers.
This Greed/Desperation dynamic has potential to exist – ALWAYS!
So . . . The answer to “When is the BEST time to Buy or Sell a house?” is pretty much always “NOW!” if you’re in the mood for a move . . .
but a word of caution from this “seasoned Real estate strategist” . . . Check yourself for “Greed/Desperation” and think twice if either are present . . . and always move forward with very intentional resolve.
Of course, I (or your local REALTOR) stand poised and ready to consult with you, analyze the market, and guide you towards informed decisions.