Why some buyers are paying way more than they need to for their home

Posted by Dan Miller, REALTOR on Saturday, July 31st, 2021 at 7:08am.

As listing agents we're able to observe and interact with many different buyer agents with each property we sell. And one trend we've been noticing lately is a surprising number of offers being written where the buyer agent assumes -- rather than verifies -- that a listing is receiving many offers.

What this means for some buyers is that they are paying way more than they need to for their home. As an example, our team recently sold a home for more than $30,000 above the list, even though only one offer was submitted for the listing. Unfortunately for these buyers, they could have purchased their home for a much lower price if their agent had invested a little more time and thought into their offer.

Negotiating the Offer to Purchase

The market is always in flux

Our late summer market is still very favorable for sellers, but it's not the same market that we experienced earlier this spring. Generally speaking, listings right now are receiving fewer showings and fewer offers than the listings in March, April and May -- which is why it's so important to hire a buyer agent who is in tune with the changing market and who actively communicates with the listing agent when it's time to write an offer. 

How we prefer to communicate with listing agents

As buyer agents, we always recommend calling the listing agent and asking these two questions before submitting an offer: 

#1) What's important to the seller? Asking this open-ended question and engaging the listing agent in a conversation can reveal a lot about the seller's priorities. Important details can be missed in emails and text messages, but a short conversation usually reveals some key insights that help us write a good offer.

#2) How busy is the listing? Asking this question helps us understand how many offers have been submitted and how many are expected in total. This key bit of info helps us determine an appropriate price before we submit our offer. 

Do you know someone who needs a professional buyer agent in 2021? 

We are here to help you, your friends and your family ask all the right questions as we negotiate on your behalf throughout your home-buying journey. Please reach out to us when you're ready to move forward with your homeownership goals. We'll be your advocates and guide you every step of the way to your dream home. 

This article is published courtesy of:
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred
1619 Monroe Street #1, Madison, WI, 53711

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